In a letter to its clients, GSW immobilien AG had recommended the acceptance of the EUR1.75 billion or USD2.4 billion offer made by its competitor Deutsche Wohnen AG. The deal would create the second largest company over leased apartments in Germany.

The combination of Deutsche Wohnen would make financial sense because of the fair and socially acceptable integration. This would also help in retaining as many jobs as possible, according to GSW in  statement after the market close today.

GSW co-CEOs Joerg Schwagenscheidt and Andreas Seagal said in a joint statement released, "We consider the business combination as convincing opportunity to pool the strengths of the two companies to develop with the aim to create additional value."

GSW shareholders would need to reach a decision on the acceptance of an offer of 2.55 Deutsche Wohnen shares for each GSW stock by October 30 midnight. Both the firms are located in Berlin, where price and rent increases have topped the rest of the countries rates.