Overview:
- Austrian commercial property businesses Immofinanz and CA Immobilien (CA Immo) have agreed to merge and form the largest commercial property group in Central and Eastern Europe.
- The merger was announced in unlikely circumstances after the competing Vienna listed businesses had each attempted and failed to take over the other in 2015.
- Despite the acrimonious nature of the takeover bids, the first stage of the companies' integration was completed in 2016 when Immofinanz acquired O1 Group's 26% stake in CA Immo for €605 million.
- Immofinanz financed the deal through cash and capital market instruments.
- The merger, which will create a business with €6 billion in real estate assets, is subject to a shareholder vote, where a minimum of 75% must be in favour of the deal for it to proceed.
- In a statement, Immofinanz said the vote would take place in 2017.
Ben Naylor - Regional Editor