Products You May Like
LONDON — Rupert Murdoch-owned REA Group said Monday it is contemplating a takeover offer for U.K. property portal Rightmove in a bid to create a global digital real estate business.
The Australian property listings company, which is controlled by Murdoch’s News Corp, said in a statement to the Australian stock market that it was considering a possible cash and share offer for Rightmove, but it has not yet had any discussions with the company.
Shares of Rightmove jumped 25% in early deals following the announcement. The stock was 23% higher by 10:56 a.m. and was trading at the top of the FTSE 100. Shares of REA Group fell as much as 6%.
Rightmove has not released a statement nor did it immediately respond to CNBC’s request for comment.
REA Group’s announcement comes after reports emerged that it was working with Deutsche Bank on a large overseas acquisition, according to the Financial Times.
The Melbourne-headquartered company did not say how much it was considering offering for Rightmove, but the U.K. platform was valued at £4.34 billion ($5.7 billion) as of market close Friday.
In its statement, REA Group said it saw the potential acquisition as a “transformational opportunity” and cited “clear similarities” between the two firms, including strong brand awareness, market share and “highly aligned cultural values.”
Under UK takeover laws, REA now has until the end of September to formally make an offer or walk away following its public expression of interest.