Australia’s REA Group has sweetened its takeover offer for UK housing portal Rightmove to £6.1bn, in its third attempt to acquire the company. The offer values Rightmove at 770p per share and is structured as 341p in cash and 0.0422 new REA shares. REA’s CEO, Owen Wilson, believes that the combination of their expertise with Rightmove’s business will enhance the experience for agents, buyers, and sellers of property.
REA, majority owned by Rupert Murdoch’s News Corp, first approached Rightmove on 5 September with an offer of £5.6bn, which was rejected for undervaluing the company. After increasing their offer by £300m, REA’s latest offer has also been rejected, leading to disappointment in the lack of engagement from Rightmove’s Board.
Shares in REA Group dropped by 2.1% on the Australian stock market following the increased offer. Rightmove’s Board must now consider this third offer as the company’s shares closed at 674p on Friday night, valuing Rightmove at £5.32bn.
In other news, Oxford Metrics has reported that customers are being more cautious, leading to a decrease in adjusted pre-tax profits. The global market is experiencing longer buying cycles and customers are taking longer to make purchasing decisions, affecting the company’s financial performance.
On the economic front, surveys of purchasing managers across major economies will provide insights into their performance this month. Chancellor Rachel Reeves is expected to promise a Budget to rebuild Britain at the Labour Party conference. Investors await the outcome of the ongoing takeover saga between REA and Rightmove.
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