Rupert Murdoch’s REA Group has withdrawn its £6.2 billion ($8.3 billion) bid to acquire Rightmove PLC just hours before a regulatory deadline, after the British property company’s board rejected multiple offers.
The Australian real estate giant confirmed on Monday that it “does not intend to make an offer for Rightmove,” stepping back from what could have been one of the year’s largest property industry deals. REA Group had until 5 p.m. to make a formal offer or retreat, per the U.K.’s “put up or shut up” rule under the Takeover Code.
REA £6.2B Rightmove Bid : Rightmove Rebuffs REA’s Offers
Despite REA’s persistent attempts to woo the British real estate platform, Rightmove’s board remained resolute in rejecting the Australian company’s advances. “We were disappointed with the limited engagement from Rightmove that impeded our ability to make a firm offer within the timetable available,” REA CEO Owen Wilson stated. “They had nothing to lose by engaging with us.”
The latest proposed offer, disclosed on Friday, valued Rightmove at £6.2 billion. It would have given shareholders 775 pence per share, alongside a special dividend of 6 pence, and allowed them to retain their 2024 dividend while remaining on the London Stock Exchange via a secondary listing of the combined group. However, Rightmove’s board deemed the offer insufficient, stating it “materially undervalues” the company.
Shareholder Interests and Stock Impact
Rightmove’s board asserted that shareholder interests would be better served by continuing to pursue its own standalone strategic plan, which focuses on long-term value creation. Andrew Fisher, chair of Rightmove, expressed the board’s desire for certainty, urging REA to submit a final proposal by the 5 p.m. deadline, but the Australian company declined to proceed further.
