Australian Real Estate Giant REA Group Abandons Pursuit of UK’s Rightmove After Fourth Rejection
In a surprise move, REA Group, the Australian property firm owned by media mogul Rupert Murdoch, has withdrawn its bid to acquire UK-based property portal Rightmove. The decision comes after Rightmove rejected REA’s fourth offer proposal, citing undervaluation of the company and its future prospects.
REA Group’s CEO, Owen Wilson, expressed disappointment at Rightmove’s limited engagement, which he claimed hindered the company’s ability to make a firm offer within the given timeframe. “We believe our bid was fair, but Rightmove refused to negotiate,” Wilson said.
The rejected offer, made on Friday, consisted of 346 pence in cash and 0.0417 new REA shares, representing a 1.3% increase from the previous proposal. Rightmove’s shares plummeted 8.4% on Monday afternoon following the news.
REA Group’s disciplined approach to mergers and acquisitions has led the company to prioritize fair pricing, and it appears they were unwilling to meet Rightmove’s valuation demands. The failed acquisition bid marks a significant setback for REA Group’s expansion plans in the UK market.
This development is likely to have significant implications for the UK property market, and industry insiders will be watching closely to see how this affects the competitive landscape.
Leave a Reply