The London Stock Exchange-listed Rightmove rejected a fourth takeover bid from Australia’s REA Group, valued at approximately £6.2 billion ($11.99 billion). REA, having exhausted negotiation attempts, announced it would not pursue the deal further.
The final offer, submitted on September 27, 2024, was a cash-and-share deal for Rightmove’s entire issued share capital. It implied a share price of 775 pence and a special dividend of 6 pence, representing a 45% premium to Rightmove’s recent average share price.
REA believed the merger would benefit Rightmove shareholders by providing exposure to a global leader in property listings and offering value certainty in a competitive market. However, Rightmove’s decision to reject the offer effectively ended the takeover bid.
REA Group expressed disappointment at the failed acquisition. They highlighted that their share price hadn’t grown significantly despite ongoing share buybacks and a strategic revamp announced last year. Additionally, REA criticized Rightmove’s board for not actively engaging in negotiations. They felt the lack of information from Rightmove hindered discussions and collaboration towards a mutually agreeable deal.
News of the potential deal surfaced in early September, confirmed by REA Group on September 2nd. REA, the parent company of realestate.com.au, saw strong synergies with Rightmove. Both companies were leaders in residential property listings, with a focus on expansion and innovation in adjacent markets. They also boasted strong audience share, brand recognition, and shared cultural values.
REA CEO Owen Wilson stated their withdrawal from negotiations underlines their commitment to a disciplined approach to capital allocation. He emphasized prioritizing financial prudence in evaluating acquisitions and highlighted their focus on pursuing other promising opportunities.
