Rightmove shares rise on potential REA acquisition by Investing.com

Investing.com — Shares of UK online real estate platform Rightmove (OTC:) rose on Monday after REA Group, an Australian digital property giant majority owned by Rupert Murdoch’s News Corp (NASDAQ: potential cash and share offer for the entire issued and to be issued share capital of Rightmove.

At 3:45am (0745 GMT), Rightmove was trading 19.8% higher at £665.40.

In an exchange filing dated Monday, REA confirmed it was considering a potential takeover of Rightmove. While no formal offer has been extended for Rightmove to date, REA is actively exploring a deal that could involve a mix of cash and shares.

“The REA board believes that there are clear similarities between REA and Rightmove in terms of their market leading positions in the core residential business,” the company said in an exchange filing.

A merger of these businesses could create one of the biggest players in the digital real estate industry. Both companies are leaders in their respective residential real estate markets.

The merged company would have a wider range of offerings, hold the leading position in both Australia and the UK and be better equipped to deliver value to its customers and consumers.

This proposed merger is a promising business for investors of both companies. Rightmove shareholders could see a substantial increase in the value of their shares and future growth potential within the larger enterprise. REA shareholders can gain access to the lucrative UK property market and anticipate benefits from combined resources and expanded operations.

The announcement does not guarantee that a formal offer will be made. Under the rules, REA has until September 30 to either announce its firm intention to make an offer or confirm it will not proceed with the acquisition. This term can be extended with the approval of the Takeover Commission.