AvalonBay Communities, Inc. (NYSE:AVB) is merging with Equity Residential Common (NYSE:EQR). The deal has an estimated equity market capitalization of about $52 billion.

The board of both companies approved the transaction. AvalonBay shareholders receive 2.793 shares of Equity Residential for each AvalonBay share held. Once the transaction closes, they will own approximately 51.2% of the combined company. Equity Residential shareholders will own about 48.8%, on a fully diluted basis.

At March 31, AvalonBay had $121.2 million in unrestricted cash and cash equivalents.

AvalonBay CEO Benjamin Schall said the deal will drive “cash flow generation, earnings and dividend growth, and value for shareholders.” Schall will lead the combined company as CEO following the merger. Mark J. Parrell, CEO of Equity Residential, will retire upon completion of the transaction.

Synergies & Combined Company

The combined company will own more than ...