CLV Group’s proposed $4-billion acquisition of InterRent REIT has received approval under the federal Competition Act, clearing the way for the transaction to proceed.

The deal will see Ottawa-based CLV acquire all outstanding units of InterRent REIT. The companies say the combined entity will benefit from enhanced scale, a stronger balance sheet, and greater operational efficiency across its multi-residential portfolio.

InterRent unitholders will receive a mix of cash and units in the newly formed entity under the terms of the deal.

The proposed transaction is expected to close later this year.

The Competition Act approval came after InterRent concluded its 40-day go-shop period without receiving any alternative acquisition proposals

Under the proposed agreement, Carriage Hill — a newly formed entity owned by CLV Group and Singapore-based GIC — will acquire InterRent in an all-cash transaction, including net debt. Operating like a special-purpose acquisition company common in the U.S., Carriage House was formed specifically to acquire InterRent.

During the go-shop window, financial advisor BMO Capital Markets contacted 85 potential buyers, with nine entering into confidentiality agreements and reviewing non-public information. None submitted an official offer.

With the go-shop period closed, non-solicitation provisions of the agreement now apply, restricting InterRent from engaging with new potential buyers unless a superior unsolicited proposal emerges.

The proposed transaction, structured as a statutory plan of arrangement under Ontario law, remains subject to court and unitholder approval.

A unitholder vote will be held August 25 at law firm Gowling’s office in Ottawa.

Pictured: Vancouver apartment building owned by InterRent.