In a surprising turn of events, British property search powerhouse Rightmove is facing a potential takeover bid from Australian rival Rea Group. The news sent shockwaves through the property and financial sectors, with Rightmove’s shares surging 27.4% to close at 708p. Rea Group, which is 61% owned by News Corp, announced to the Australian stock exchange that it was considering a cash-and-shares offer for Rightmove. The Australian company, responding to media speculation, clarified that it had not yet approached or discussed the offer with Rightmove.
Rightmove, a FTSE 100 company valued at £5.3 billion, has dominated the UK property search market since its inception in 2000. With an 86% market share in the first half of 2024, the company reported a 7% increase in revenue to £192.1 million and a 2% growth in pre-tax profit to £132.7 million.
The potential takeover comes at a time when Rightmove faces increasing competition, particularly from CoStar, an American property data company that recently acquired OnTheMarket for £99 million. CoStar has pledged to invest heavily to challenge Rightmove’s market dominance.
Rea Group, one of Australia’s top 20 companies with a market capitalisation of A$27.3 billion (£14 billion), sees this as a “transformational opportunity” to create a global digital property company with leading positions in both Australia and the UK.
Industry analysts have expressed surprise at the potential deal, noting that there are limited cross-border synergies between the two companies. However, Rea Group’s experience in Rightmove’s strategic growth areas could provide some upside.
Under UK takeover rules, Rea Group has until 30 September to announce a firm intention to make an offer or walk away. As the property sector watches closely, this potential merger could reshape the landscape of online property searches in the UK and beyond.
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