REA Group Considers Bid for Rightmove

REA Group Ltd., the Australian real-estate advertising company, is contemplating a significant acquisition of UK property portal Rightmove, which has a market value of approximately £4.38 billion ($5.8 billion). Despite the announcement, REA has not yet approached Rightmove, and the news of the potential takeover led to a 6.5% drop in REA's share price on Monday. The company believes that merging with Rightmove could unlock shareholder value and enhance its offerings in both Australia and the UK. Additionally, REA is reported to be in discussions regarding another acquisition involving a trade player, suggesting a strategic expansion into international markets. Analysts note that any substantial deal may require equity raising, especially in light of favorable market conditions due to anticipated interest rate cuts. REA Group's current market capitalization stands at A$28.9 billion ($20 billion).