Bundeskartellamt clears possible takeover of Deutsche Wohnen by Vonovia

In first phase proceedings the Bundeskartellamt has cleared plans by Vonovia SE, Düsseldorf, to acquire all the shares in Deutsche Wohnen AG, Frankfurt am Main, by way of a public takeover bid. The project affects a number of local or regional markets for the rental of residential property throughout Germany.

Andreas Mundt, President of the Bundeskartellamt: "In the event of a successful public takeover bid, Vonovia will consolidate its position as the leading company nationwide in the sector with approx. 500,000 rental housing units. We have therefore carried out a thorough examination of the local and regional markets affected. Private landlords, municipal housing companies, housing cooperatives and other commercial providers are well represented in all the regions. It was therefore unlikely that Vonovia would gain a dominant position in the market or that competition would be impeded within the meaning of competition law."

Due to the geographic focus of the companies involved, the city of Berlin was in the focus of the authority's market investigations as well as the cities of Bingen/Rhine, Dresden, Kiel and Laatzen, and the municipality of Wustermark. With regard to possible market segments, a special focus was placed on 2-3 room apartments with standard fittings and a net cold rent of up to six or seven euros per square metre. Such apartments are usually let to low or middle income families. Even in consideration of these possible market segments the authority found no indication that the concentration of the offer of housing by the companies involved would have to be viewed as critical. The Bundeskartellamt also took into account the statutory provisions on the protection of tenants which are complemented in some cases by additional provisions applicable in the federal states and municipalities affected. Particularly in the case of a change of ownership, rents can for example only be raised subject to strict preconditions.