The German residential real estate sector remains in motion. LEG Immobilien AG (LEGIF) announced that it is in talks with rival TAG Immobilien AG (TAGOF) regarding a potential merger. LEG plans to propose an all stock transaction in order to combine the companies' businesses. In this article I will explain why I believe that a merger would make sense and what it would mean for shareholders of both companies.
Source: TAG Immobilien AG
Portfolio Diversification
LEG's portfolio is predominantly located in Western Germany. TAG on the other hand is geographically focused