Autonation plots £350m swoop for Inchcape’s UK dealerships after Pendragon blow

Autonation is plotting a £350m swoop for Inchcape’s UK car dealerships just months after pulling out of a bidding war for Pendragon.

The New-York listed car dealer is at the early stages of considering an offer for Inchcape UK alongside a number of other suitors, Sky News’ Mark Kleinmann reported.

It comes just half a year after Autonation withdrew from a bidding war for the London-listed car dealer Pendragon, which was eventually snapped up by another US outfit, Lithia Motors, for £397m.

Insiders told Sky News the deal could be worth around £350m.

Autonation declined to comment. A spokesperson for Inchcape said: “We note the speculation, but do not have any comment to make.”

Some of the largest UK car dealerships have been snapped up by overseas investors in recent years.

Prior to its acquisition of Pendragon, Lithia Motors bought Jardine Mators off Hong Kong-based Jardine Matheson Holdings for over £300m.

Canada’s Alpha Auto Group bought Lookers for £465m in June.

On top of Lithia and Autonation, the bidding war for Pendragon had attracted also roped in Sweden’s Hedin Group and US-based Penske Automotive.

Figures compiled by the consultancy EY last August show 10 transactions involving overseas investors had taken place in the three years post-Covid, compared to 20 the decade prior. Several more have since been completed.

A weakened pound has made British firms attractive takeover targets, while newer, more online-focused retailers are increasingly international in nature.