American car dealer Auto Nation has pulled out of the race to acquire the Stratstone and Evans Halshaw owner Pendragon.
The Florida firm set up a three-way bidding war with a 32p a share offer for one of Britain’s few remaining listed car dealers three weeks ago.
This followed a proposal from Lithia Motors, North America’s largest car dealer, and a joint approach from Hedin Mobility Group, Pendragon’s largest shareholder, and Penske Automotive Group.
Non-runner: Auto Nation has pulled out of the race to acquire Stratstone and Evans Halshaw owner Pendragon
Hedin and Penske have abandoned their bid. And with Auto Nation pulling out, the path is clear for Lithia to complete its £397m deal.
Auto Nation’s boss Michael Manley said: ‘[Pendragon’s] assets presented Auto Nation with a potential opportunity to expand into a new market.
However, after further considering the opportunity, we decided not to make a formal offer.’ Pendragon shares fell 8.7 per cent, or 2.95p, to 31p.
Shareholders are set to vote on the Lithia deal next Wednesday, with a simple majority needed for it to pass.
If it goes through, Pendragon will sell its car dealership to Lithia, while its dealer management software arm Pinewood would become a joint venture with the US company.
Pendragon would then be renamed Pinewood Technologies and remain listed in London.
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