REA Group Considers Acquisition of UKs Rightmove

Highlights:

• REA Group (ASX: REA) is considering a cash and share offer to acquire UK-based Rightmove, aiming to create a global digital property leader.
• REA’s shares dipped 5.2% following the announcement, signaling market uncertainty over the potential acquisition.

REA Group (ASX: REA) Eyes Global Expansion with Potential Rightmove Buyout

Australia's leading property technology firm, REA Group (ASX: REA), has announced that it is exploring a potential acquisition of Rightmove, the UK's largest online real estate platform. In a statement released on Monday to the Australian Securities Exchange (ASX), REA, which is majority-owned by News Corp and operates realestate.com.au, confirmed it is contemplating a cash and share offer for the entirety of Rightmove’s issued and to-be-issued share capital.

Strategic Fit for Global Expansion

REA’s board highlighted the “clear similarities” between the two companies, suggesting that the acquisition could pave the way for the creation of a global digital property powerhouse. However, the board emphasized that there is no certainty that an offer will be made or, if so, the terms on which it may proceed. The company reassured its shareholders that no immediate action is required on their part.

Rightmove’s Market Position

Rightmove, established in 2000 by four corporate estate agencies, has grown to become the dominant player in the UK property market. Listed on the London Stock Exchange since 2006. On the other hand, REA Group, founded in 1995, is one of the top 20 companies on the ASX. Deutsche Bank is advising REA on this potential acquisition.

REA’s Market Reaction

Following the news, shares in REA Group experienced a 5.2% decline. The potential acquisition, while still uncertain, signals REA’s ambition to expand its footprint beyond Australia and establish a stronger presence in the global real estate market.

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