Lithia set to snap up Pendragon after Autonation drops bid
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.
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.