One of Germany’s biggest residential landlords, Deutsche Wohnen AG, has offered to buy rival LEG Immobilien in one of the country’s largest-ever real estate transactions.
The deal values the firm at €4.6bn (£3.4bn) excluding debt.
Deutsche has offered 3.3 of its own shares per LEG share. Deutsche Wohnen chief executive Michael Zahn would run the combined company.
LEG’s supervisory board has accepted the offer.
The move would create a firm with 250,000 rental flats valued at more than €16bn, giving the firm the firepower to challenge rival Vonovia SE.
The Financial Times has reported that Vonovia is in the early stages of considering a counteroffer.
