Australian property listing group REA is considering a takeover bid for London-listed rival Rightmove (LSE: RMV), potentially creating a major global digital property company. Rightmove’s shares surged 27% to 702.60 pence in late Monday trading on the news.
REA, which is 61% owned by News Corp, announced that it is weighing a cash and share offer for the FTSE 100 firm. The company indicated that such a bid could represent a “transformational opportunity,” positioning the combined entity as a leading player in both Australia and the UK.
In a statement, REA highlighted that it has not yet approached or engaged in discussions with Rightmove about the potential offer. However, REA sees significant value in merging the two companies, suggesting that the combination could offer robust growth, strong margins, and substantial cash generation, benefiting both REA and Rightmove shareholders.
REA has until September 30 to either confirm its intention to make a formal offer or withdraw from the process. The company stressed that there is no certainty a bid will be made and that Rightmove is not required to take any action at this time.
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