Lithia set to snap up Pendragon after Autonation drops bid

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Transport Reporter

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Vertu chief executive Robert Forrestor said he was "pleased to report that trading remains positive" despite concerns over the ZEV mandate.
Vertu chief executive Robert Forrestor said he was "pleased to report that trading remains positive" despite concerns over the ZEV mandate.

Autonation has pulled out of the race to acquire UK car dealership Pendragon, clearing the way for US-based Lithia Motors to takeover the firm’s UK motor business.

Autonation said in a stock market announcement late yesterday that “it does not intend to make an offer for Pendragon”.

The announcement comes ahead of a crunch vote next Wednesday, which will see shareholders vote on Lithia’s £397m bid at a meeting in London.

Pendragon’s share price fell on the news, and was down eight per cent at the time of reporting.

Pendragon declined to comment.

In September, Pendragon, which runs the Stratstone and Evans Halshaw, agreed to sell its motor business to Lithia for £250m – a deal backed by 29 per cent of its stakeholders.

But Swedish group Hedin launched a counter offer alongside Penske automotive.

A subsequent bid from Autonation, which valued the company at £447m, then ignited a three-way scrap for the firm.

Lithia, however, decided to sweeten its offer for the firm to £397 after Autonation’s bid.

The battle over Pendragon marks the latest in a string of foreign swoops for UK car dealerships, with only two others now left in the country – Vertu Motors and Caffyns.