GoCompare could attract new sector peer interest, but competition hurdles loom

14 December 2017 - 10:36 am UTC

Author(s): by Amy-Jo Crowley @Amy-Jo Crowley and Gustav Sandstrom@Gustav Sandstrom
GoCompare.com [LON:GOCO] could be a logical target for sector rivals but most of them could face competition hurdles, a source familiar with the situation, four sector bankers and an industry analyst said.

The UK price comparison group last month rejected ZPG’s [LON: ZPG] unsolicited 110 pence/share cash and stock proposal, saying that it undervalued the business with only a 5% premium over the three-month average share price. As reported, it projected a promising independent future for itself after the suitor backed off.

If there is a new approach for GoCompare, ZPG, which owns rival comparison site, uSwitch, would remain the most likely bidder, the first two sector bankers and the analyst agreed. UK price comparison is dominated by five big players: Moneysupermarket.com [LON:MONY], GoCompare, ZPG, Admiral Group’s [LON:ADM] Confused.com and BGL Group’s Comparethemarket.com.
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