November 26, 2019 / 2:29 PM / 13 days ago

Austrian property groups Immofinanz and S Immo abandon merger plan

FILE PHOTO: The logo of Austrian real estate group Immofinanz is pictured on top of the company's headquarters building in Vienna August 13, 2010. REUTERS/Heinz-Peter Bader

VIENNA (Reuters) - Austrian property groups Immofinanz (IMFI.VI) and its smaller rival S Immo (SIAG.VI) have abandoned their plan to merge, they said on Tuesday, leaving their crowded market’s future uncertain after another planned merger by Immofinanz fell through.

Austria has three listed property companies: Immofinanz, S Immo and CA Immo (CAIV.VI). Last year Immofinanz's planned merger with CA Immo fell through here after which it turned its focus to S Immo, of which it now owns 29%. But its plans appear to have changed again.

“The executive boards of S Immo and Immofinanz today decided to end their discussions over the possible combination of the two companies,” Immofinanz said in a statement.

“This decision was based, in particular, on the inability to reach an agreement over a possible (share) exchange ratio.”

The Austrian real estate industry has been long been seen as ripe for consolidation. Residential property firms Conwert and Buwog were taken over by German market leader Vonovia last year.

Reporting by Francois Murphy; editing by Jonathan Oatis

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