Idealista Abandons Kyero Purchase, Blames Portuguese Competition Authority for Delays
The board of directors for the real estate marketplace Idealista announced on Wednesday its decision to withdraw from the acquisition of Portal47 Ltd, the British company that owns the property portal Kyero. The company cited significant delays resulting from an extended investigation by the Portuguese Competition Authority (AdC) as the primary reason for terminating the deal, which was originally agreed upon in December 2024. The Spanish-based company had been awaiting a decision from the AdC for several months after the regulator initiated a second-phase, in-depth analysis of the proposed merger.
In a statement published on its official blog, Idealista detailed the rationale behind its withdrawal. “The AdC's decision to take the operation, notified ad cautelam, to a second phase, despite the scarce presence of the portal Kyero in this market, caused a material delay in the closing of the operation, which harmed the interests of idealista, having led the company to renounce this acquisition,” the company explained. This move signals a significant setback in Idealista's strategy to expand its reach, particularly among international buyers interested in the Southern European property market, including Portugal.
An unidentified spokesperson for Idealista suggested the AdC's motives might extend beyond this specific transaction. “We do not rule out that the AdC may have wanted to take advantage of the purchase of a smaller portal to pronounce on the activity of idealista in the future,” the representative stated. The company further criticized the broader implications of the regulator's actions, describing the “abrupt desfecho” (abrupt outcome) as a “discouraging message” for the growth of technology companies across Europe. Idealista argued that rigid enforcement by EU competition authorities can create an environment that favors the expansion of non-European firms at the expense of businesses originating within the Union.
The acquisition was first notified to the AdC, led by Nuno Cunha Rodrigues, approximately one month after the initial agreement was reached. By June of this year, the authority announced its decision to launch a thorough investigation. The AdC expressed “sérias dúvidas” (serious doubts) regarding the deal's compatibility with competition rules in the Portuguese market. The regulator's formal concern was that the merger could create significant impediments to competition within the market for online real estate classifieds, a sector where Idealista already holds a commanding presence in Portugal and Spain.
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Kyero operates as an online real estate classifieds platform specifically targeting individuals from Germany, the United Kingdom, and other Northern European countries who are looking to purchase or rent property in Southern European nations such as Portugal, Spain, France, and Italy. The portal serves as a key bridge between international property seekers and the local markets. The collapse of the deal leaves the competitive landscape of property portals in Portugal unchanged for now, but raises questions about future consolidation in the sector.
Idealista's statement also referenced the recent report on European competitiveness by former Italian Prime Minister Mario Draghi, suggesting the outcome of this deal substantiates his diagnosis of a challenging future for the European technology sector. “Sometimes, the rigidity of the competition authorities of the European Union ends up favoring the growth of non-European companies in Europe at the expense of technology companies born within the EU,” the company added, highlighting a perceived structural disadvantage for local innovators.
The failed acquisition represents a notable event within the professional real estate industry, underscoring the increasing scrutiny that dominant digital platforms face from regulatory bodies. For real estate agencies, developers, and other professionals who rely on these portals for visibility, the decision maintains the current market structure but also signals potential regulatory headwinds for future technology-driven mergers and innovations in the property sector. The AdC has not yet released a public comment on Idealista's withdrawal.
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