Part of Rupert Murdoch's vast empire, REA Group Ltd. is evaluating a takeover bid for £5.8 billion UK property web Rightmove Plc in an attempt to establish a worldwide digital real estate company.

The News Corp.-owned Australian real estate listing service said on Monday that it is mulling a potential cash and share acquisition of Rightmove. REA claimed that it hasn't made any approaches to the business or discussed making an offer.

Shares of REA dropped as much as 8% in Sydney, the biggest intraday decline since December 2022, on Monday amid concerns that it may have to issue stock to fund a deal. Rightmove has slipped 3.5% in London trading this year, giving it a market value of £4.38 billion ($5.8 billion)

Any deal would boost the scale of REA, which is the largest player in the Australian online real estate industry and has already expanded into other markets including India. Rightmove has maintained steady revenue growth in recent years, and the UK housing market is expected to pick up as interest rates decline.

REA’s disclosure, triggered by media speculation, now forces the company into a decision one way or the other. Under the UK’s takeovers code, REA must announce a firm intention on whether to bid by Sept. 30 at 5 p.m. London time.

“A combination of the two businesses would provide a significant opportunity to unlock shareholder value,” REA said in a statement.

REA said it would add “investment and innovation” to Rightmove following any acquisition. The enlarged group would deliver “robust growth with strong margins and significant cash generation, enabling continued capital appreciation and shareholder returns,” the Richmond, Victoria-based company said.