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History says REA’s $9b UK bet is a risk. But here’s why it can work

Local investors have been repeatedly burnt by big Australian companies trying to go offshore. But there are sound strategic reasons why REA can defy history.

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REA Group’s prospective $9 billion bid for Britain’s property classifieds leader Rightmove is precisely the sort of deal that sends shivers up the spine of Australian investors.

They’ve seen it time and time again. A highly successful Australian company decides its model can work overseas, spends big money on a deal, and blows up an enormous amount of shareholder capital and goodwill.

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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com

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    Original URL: https://www.afr.com/chanticleer/history-says-rea-s-9b-uk-bet-is-a-risk-but-here-s-why-it-can-work-20240902-p5k77g