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Rupert Murdoch’s REA Group has withdrawn its takeover bid for Rightmove PLC (LSE:RMV) after the online estate agent rejected a fourth proposal. In a strongly worded statement, REA expressed frustration with the board of Rightmove, stating that the proposed deal would have allowed Rightmove shareholders to participate in a rapidly growing, global company while providing "value certainty" amid rising market competition.
REA’s fourth proposal included an offer price of 775p per share, alongside a special dividend of 6p per share, representing a 45% premium to Rightmove’s 12- and 24-month volume weighted average share prices. Despite this premium, Rightmove’s board did not engage in meaningful discussions, according to REA.
The Australian group emphasized that the potential acquisition hinged on agreeing to a fair price, which REA said would have required constructive engagement. REA revealed that two high-level meetings between the companies’ chairmen took place on 28 and 29 September 2024, but noted that Rightmove provided no presentations or additional information during these discussions.
REA maintained that extending the 30 September 2024 bid deadline could have allowed both companies to explore whether a mutually agreeable proposal could be reached. Owen Wilson, REA’s chief executive, expressed disappointment with the lack of cooperation from Rightmove, stating that the limited engagement hindered their ability to make a firm offer within the available timeframe.
“We were disappointed with the limited engagement from Rightmove that impeded our ability to make a firm offer within the timetable available. They had nothing to lose by engaging with us,” Wilson said. He added that REA would continue to focus on other growth opportunities while maintaining its disciplined approach to mergers and acquisitions.
