The REA Group Limited (ASX:REA) share price is down $3.12 or 3.43 per cent to $87.79 as the online property advertiser has received the consumer watchdog’s approval of its $130 million acquisition of property data company Hometrack Australia.
The Australian Competition and Consumer Commission (ACCC) on Wednesday said it will not intervene in the acquisition, which was announced in early May and is due to be completed in the coming days.
REA Group, which is majority owned by News Corp, says Hometrack will allow realestate.com.au to deliver more property data and insights to its customers.
The Hometrack management team will continue to be led by chief executive Brendan Darcy and will operate under its current structure and brand.
REA Group has said Hometrack is expected to deliver revenue of between $13 million and $15 million and earnings of between $6 million and $7 million in its fiscal year to September 30.
REA Group achieved a 21 per cent increase in earnings in the first nine months of its fiscal year to $345 million, on the back of strong demand in its residential and commercial businesses.
REA shares are lower in a weaker overall Australian share market, with the S&P/ASX 200 Index down 30 points or 0.5 per cent to 5,984 in Wednesday afternoon trade.
REA competitor Domain Holdings Australia Ltd (ASX:DHG) bucked the downwards trend, Domain Holdings shares rising 2 cents or 0.6 per cent to $3.31.