In the past, this project has already failed. When Vonovia tried to take over Deutsche Wohnen in 2016, shareholders and Deutsche Wohnen CEO Michael Zahn opposed the move. At the time, Zahn said at a press conference in Berlin, the atmosphere was “hostile”. Now, however, there is a common “attitude and culture”.
The market reacted in two ways to the announcement: The Deutsche Wohnen share price shot up by a good 15 percent immediately on the following day. The Vonovia share price, on the other hand, plummeted by six percent. The rise at Deutsche Wohnen is not surprising, as listed companies often benefit from being traded as takeover candidates, as “target companies”. Even if at first there are often only merger rumors.
In any case, the merger will mean a strong presence for Vonovia in Berlin.
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