Idealista's Kyero Acquisition Cancelled As Competition Authority Steps In

Idealista's proposed acquisition of the second-home marketplace Kyero has been called off after competition authorities deemed the deal "unworkable".

The proposed acquisition was announced last year but has been scrutinised by competition authorities ever since, with particular focus on coastal regions popular with international buyers.

A post on idealista's blog explained the reasons behind the decision, saying:

Idealista has been negotiating with the Spanish authorities for several months to try to find a reasonable solution that would accommodate the CNMC's requirements, which went beyond the scope of the transaction and disproportionately limited idealista's commercial activity, preventing it from operating normally in the market. This negotiation caused a material delay in the closing of the transaction, which was detrimental to the interests of the parties, who have decided to abandon this transaction. [Translated from Spanish]

An idealista spokesperson said:

"We do not rule out the possibility that the CNMC [Comisión Nacional de los Mercados] may have sought to take advantage of the acquisition of a smaller portal to regulate idealista's commercial strategy in the future, whether or not it had a relationship with Kyero. Sometimes, the rigidity of EU competition authorities ends up favoring the growth of non-European companies in Europe at the expense of technology companies born in the EU."

Idealista also used its statement to question 'hyperregulation' in Europe, saying:

It does not seem reasonable that, in the quest for a single European market that competes with other global markets, there should be 52 competition authorities at the national and regional level. For comparison, in the US there are only two competent authorities: the FTC (Federal Trade Commission) and the DOJ (Department of Justice).

Kyero co-founder Louise Dell also shared her disappointment, saying:

“The idealista acquisition would have been a positive step for both companies, and naturally we are disappointed it couldn’t go ahead. But the process has underlined Kyero’s position as a significant player in the property market. We’re ready to continue building on our strengths and delivering for our customers.”

Kyero will now refocus investment into initiatives that support growth and strengthen its role as a trusted partner for agents and buyers in the property market.

Idealista remains a clear market leader in its native Spain and neighbouring Portugal, registering revenue growth of 16% in 2024. However, the company will face increased competition in Spain with the recent bombshell acquisition of the number-two portal Fotocasa by the German portal operator Scout24.