Investing.com — Shares of Rightmove (OTC:RTMVY), the UK’s online real estate platform, surged on Monday after REA Group, an Australian digital property giant majority-owned by Rupert Murdoch’s News Corp (NASDAQ:NWSA), announced a potential cash and share offer for the entire issued and to be issued share capital of Rightmove.
At 3:45 am (0745 GMT), Rightmove was trading 19.8% higher at £665.40.
In an exchange filing dated Monday, REA confirmed that it is mulling over a potential takeover of Rightmove. Although no official offer has been extended to Rightmove as of yet, REA is actively exploring a deal that could involve a mix of cash and stock.
“The REA Board believes that there are clear similarities between REA and Rightmove in terms of their leading market 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 businesses are leaders in their respective residential property markets.
The merged company would have a broader range of offerings, hold the top position in both Australia and the UK, and be better equipped to provide value to its customers and consumers.
This proposed merger is a promising venture for both companies’ investors. Rightmove shareholders could see a substantial increase in their share value and future growth potential within a larger enterprise. REA shareholders can gain access to the profitable UK property market and anticipate benefits from combined resources and expanded operations.
The announcement doesn’t ensure a formal offer will be made. According to the rules, REA has until September 30th to either announce a firm intention to make an offer or confirm they won’t pursue the acquisition. This deadline can be extended with approval from the Takeover Panel.