The potential for a multi-billion pound acquisition of Rightmove by REA Group, an Australian competitor in the listings market, has propelled shares of the UK’s largest online property platform to new heights within the FTSE 100 list.

By the conclusion of trading in London on Monday, shares of Rightmove had increased by 27.4%, translating to a rise of 152.40p, reaching a price of 708p and valuing the company at approximately £5.6 billion. REA Group announced on the Australian stock exchange that it was contemplating a cash-and-shares proposal for the British property portal.

In a release to the London Stock Exchange following the day’s trading, Rightmove acknowledged REA’s communication, emphasizing that “any offer for Rightmove is governed by the City Code on Takeovers and Mergers,” noting that REA must finalize an offer or retract by 5pm on September 30.

Founded in 2000 by Countrywide, Connells, Halifax, and Royal & Sun Alliance estate agencies, Rightmove became publicly traded on the London Stock Exchange in 2006.

Rightmove has established itself as the premier platform for home seekers in Britain. In the first half of 2024, the portal held an impressive 86% share of the housing search market, with revenues climbing 7% to £192.1 million compared to the same period last year.

Pre-tax profits also saw a 2% increase, totaling £132.7 million. Rightmove boasts substantial margins; for every £1 spent by estate agents and developers, the company made 69p in profit during the first half of the year. Approximately 19,000 estate agents and developers utilize the platform to advertise.

REA Group is predominantly owned by News Corp and stands as one of the top 20 companies listed on the Australian stock exchange, with a market valuation of A$27.3 billion (£14 billion). The previous month, REA announced substantial growth in annual earnings and an increase in dividends.

“The board recognizes that there are significant similarities between REA and Rightmove, especially in their dominant positions within the core residential sector,” REA stated in its announcement.

The speculation surrounding the potential takeover was first reported in the Street Talk column of the Australian Financial Review, which indicated that REA had engaged Deutsche Bank as a financial advisor as it explores a major transaction.