(Bloomberg) -- Vonovia SE’s roughly 19 billion-euro ($22.3 billion) offer for rival Deutsche Wohnen SE is collapsing after failing to secure enough shareholder backing.

Germany’s largest residential real estate firm said in a statement Friday that it was unlikely to reach the minimum 50% acceptance threshold required for its offer to be successful.

Investors in Deutsche Wohnen had a deadline of Wednesday midnight to tender their shares for what would have been the year’s biggest European takeover and the largest ever in the region’s real estate sector. So far only about 47.62% have been tendered, according to the statement.

“Vonovia will likely not reach the minimum acceptance level of its voluntary public takeover offer to shareholders of Deutsche Wohnen,” the company said. “Vonovia continues to view the combination of the two companies as strategically compelling.”

Shares in Deutsche Wohnen fell as much as 3.38% in Frankfurt on Friday. Following the breakdown, Vonovia will own about 18.3% of Deutsche Wohnen. Vonovia said in its statement that it will now carefully consider all options, including the sale of its holding or a new offer.

A deal would have combined Germany’s two largest residential landlords into an entity controlling more than 500,000 apartments and further consolidated the power of large property owners -- an issue that has inflamed activists, especially in Berlin.

Street Protests and Rooftop Beers Herald Record Property Deal

German landlords have faced intense public pressure over the past few years over rising prices, particularly in the nation’s capital. Deutsche Wohnen has been the main target of activists after buying a large amount of social housing that was put up for sale by the city to pay down public debt after the Berlin Wall fell.

©2021 Bloomberg L.P.