Hypo Real Estate Makes Offer for Depfa Bank PLC

Hypo Real Estate Group is making a bid to takeover the Depfa Bank PLC which would create a 10 billion dollar company that would be a powerhouse in commercial real estate finance. Depfa is an Irish based company while Hypo hails from Germany causing their to be some regulatory hurdles to be overcome, but the deal is designed to make the combined companies leaders in the commercial real estate market.

Hypo Real Estate will issue about 67 million new shares to Depfa shareholders, and pay them 2.4 billion euros ($3.3 billion) in cash. Depfa, which specializes in public-sector finance, will become a wholly owned subsidiary of Hypo but keep its name, headquarters and brand identity.
Hypo Real Estate, which provides large-volume commercial real-estate financing, said in a statement that the 5.7 billion-euro acquisition would create one of the world’s leading providers of financing for commercial real estate, the public sector, and infrastructure projects. via the Houston Chronicle.

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