German real estate giant in bid for rival

German real estate giant Deutsche Wohnen outlined on Tuesday a 1.75-billion-euro ($2.3-billion) takeover offer for rival company GSW.

"The goal of the takeover is to create a leading German residential real estate company, to achieve synergies and to enhance the operative performance as a consequence of the merger," Deutsche Wohnen said in a statement.

"Deutsche Wohnen AG intends to continue its current strategy to focus on dynamic growth regions such as Berlin."

The two companies will have a combined real estate portfolion of 8.5 billion euros.

Under the terms of the deal, Deutsche Wohnen will offer 51 of its own shares for 20 shares in GSW.

Upon completion, GSW shareholders will hold a 43-percent stake in the combined entity.

Both groups are listed on the Frankfurt stock exchange and have a number of common shareholders, such as BlackRock and MFS, or Norwegian bank Norges Bank.

The deal needs regulatory approval and the green light from at least 75 percent of GSW shareholders and is expected to be completed in the first half of 2014.

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