Vonovia and Deutsche Wohnen Join Forces

Berlin-based real estate companies Vonovia SE and Deutsche Wohnen SE announce the initiation of a process to enter into a control and profit transfer agreement, a move that will create Europe's largest residential real estate company

The combination of Vonovia and Deutsche Wohnen will result in a portfolio of around 568,000 residential units, making it the leading residential real estate company in Germany and Europe. The combined company will have a market capitalization of approximately €42 billion and will be well-positioned for continued growth and value creation.

The transaction is subject to regulatory approvals and the approval of the shareholders of both companies. The closing of the transaction is expected to take place in the second half of 2023.

Strategic Rationale

The combination of Vonovia and Deutsche Wohnen is a compelling strategic fit that will create a leading European residential real estate company with a strong market position in Germany.

The combined company will benefit from a number of synergies, including:

• Cost synergies: The combined company will be able to achieve significant cost savings through scale and efficiency gains.
• Revenue synergies: The combined company will be able to generate additional revenue through cross-selling opportunities and the development of new products and services.
• Market position: The combined company will have a strong market position in Germany, with a leading portfolio of residential units in the country's largest cities.

Management Team

The combined company will be led by a management team with a proven track record of success in the residential real estate sector.

Rolf Buch, CEO of Vonovia, will become the CEO of the combined company.

Michael Zahn, CEO of Deutsche Wohnen, will become the Deputy CEO of the combined company.

Transaction Details

Under the terms of the agreement, Vonovia will acquire all of the outstanding shares of Deutsche Wohnen in a share-for-share transaction.

Vonovia shareholders will receive 1.03 Vonovia shares for each Deutsche Wohnen share they own.

The transaction is subject to regulatory approvals and the approval of the shareholders of both companies.

The closing of the transaction is expected to take place in the second half of 2023.

Conclusion

The combination of Vonovia and Deutsche Wohnen is a transformative transaction that will create Europe's largest residential real estate company.

The combined company will benefit from a number of synergies, including cost synergies, revenue synergies, and a strong market position in Germany.

The transaction is expected to close in the second half of 2023, subject to regulatory approvals and the approval of the shareholders of both companies.