German real estate giant makes a bid for rival

Berlin, Allemagne: German real estate giant Deutsche Wohnen outlined on Tuesday a €1.75 billion (Dh8.5 billion) takeover offer for rival company GSW.

“The goal of the takeover is to create a leading German residential real estate company, to achieve synergies and to enhance the operative performance as a consequence of the merger,” Deutsche Wohnen said in a statement. “Deutsche Wohnen AG intends to continue its current strategy to focus on dynamic growth regions such as Berlin.”

The two companies will have a combined real estate portfolio of €8.5 billion. Under the terms of the deal, Deutsche Wohnen will offer 51 of its own shares for 20 shares in GSW. Upon completion, GSW shareholders will hold a 43 per cent stake in the combined entity.