An American automotive dealership large has clinched a deal to purchase Jardine Motors, one in all Britain’s largest automotive retail teams, for greater than £300m.
Sky News has learnt that Lithia Motors, which has a market capitalisation on the New York Stock Exchange of greater than $6bn, hopes to announce the acquisition of Jardine as quickly as Thursday.
One supply mentioned the worth could be between £300m and £400m.
The deal will see Jardine Motors being offered by Jardine Matheson Holdings, the venerable Hong Kong-headquartered conglomerate.
Jardine Matheson owns property together with the Mandarin Oriental lodge chain and Hong Kong Land.
The takeover will give Lithia a considerable foothold within the UK, with entry to luxurious automotive manufacturers together with Ferrari and Maserati.
Lithia is dedicated to utilizing the Jardine Motors enterprise as a platform for development, insiders informed Sky News in January.
It could be the newest in a string of tried offers within the sector, with Pendragon not too long ago having ended talks a few takeover by its largest shareholder.
Lithia itself additionally tried to purchase Pendragon final yr.
Other massive gamers within the sector embody the likes of Lookers, whereas main on-line opponents corresponding to Cazoo have suffered from the worldwide sell-off in know-how shares.
Jardine Motors was acquired as a single East Anglia dealership by Jardine Matheson within the early Nineteen Nineties.
It employs roughly 2,700 individuals at 50 websites throughout the UK, in keeping with its web site.
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Brands offered at its dealerships embody Ferrari, Jaguar, McLaren and Porsche.
Lithia declined to broaden on an announcement issued to Sky News in January, which mentioned: “Lithia has a stated desire to expand into the UK market and has held discussions with Jardine Matheson with a view to investing in Jardine Motors Group UK.
“Lithia views the potential acquisition of Jardine Motors as a platform for future development within the UK and plans to put money into the enterprise, working with Jardine Motors’ market-leading administration group to construct on the robust momentum the Group has generated lately.
“Discussions around a potential transaction are ongoing and a further update will be issued in due course.”
A Jardine Motors spokesman declined to remark.
Rothschild is advising Jardine on the talks, whereas Deloitte is advising Lithia.