Amsterdam-listed real estate companies VastNed Offices/Industrial (VNOI) and Nieuwe Steen Investments (NSI) have formally begun merger negotiations. The talks come after the completion of a due-diligence procedure.

NSI approached VNOI in December 2010 about the potential merger which, if carried out, would create a company with about EUR 2.4 bn of property in the Netherlands, Belgium, France, Germany and Switzerland.

In a statement on Friday, VNOI said, 'expectations cannot be build upon this and earlier announcements and that there is no guarantee whatsoever that a transaction will occur'.