REA Group seeks to acquire the Mortgage Choice business

REA Group has announced its proposal to acquire the Mortgage Choice business. REA announced a scheme implementation agreement to buy the ASX-listed Mortgage Choice for $244 million, or $1.95 a share, representing a 66 per cent premium to Mortgage Choice’s last close. Their acquisition will accelerate REA’s financial services strategy to create a leading mortgage broking business in addition to its real estate listings website. “The proposed acquisition of Mortgage Choice is an exciting development that will bring together our well established Smartline business and franchisee network with the complementary Mortgage Choice organisation and its significant broker footprint," REA Group CEO, Owen Wilson said. The transaction is still subject to conditions being met, including Mortgage Choice shareholder and regulatory approvals. It is expected to take approximately three months to complete. Mortgage Choice has a $54 billion loanbook. The network has more than 500 brokers across 380 franchises. Its biggest shareholder is the Commonwealth Bank of Australia with an 18.5% stake. Domain has its Loan Finder, a joint venture between Domain Holdings Australia Limited and Auscred Limited, the parent entity of mortgage platform Lendi.