Alpha Auto Group to Acquire British-Based Lookers in £400m Deal
Alpha Auto Group, a Canadian car dealer network, is buying British peer Lookers in a deal worth over £400m.
The takeover, which values Lookers at approximately 120p-a-share, is expected to be announced as early as Tuesday.
The deal will be pitched at a substantial premium to Lookers' closing price on Monday.
Alpha Auto Group has seven sites in the US and 10 in its home market, and has agreements with manufacturers including Audi, FORD, BMW, TOYOTA, and Mercedes.
Lookers, which dates back to 1908, was originally a bicycle and parts dealer, and became a distributor of Austin motor vehicles in 1918.
The company floated on the London Stock Exchange in 1973 and now sells cars made by Jaguar, Kia, and Maserati, among others.
However, the company was embroiled in an accounting fraud in 2019 and saw its future thrown into doubt.
The deal comes as many analysts believe listed UK dealers are relatively cheap and are likely to benefit from industry consolidation.
The deal will be pitched at a substantial premium to Lookers' closing price on Monday.
Alpha Auto Group has seven sites in the US and 10 in its home market, and has agreements with manufacturers including Audi, FORD, BMW, TOYOTA, and Mercedes.
Lookers, which dates back to 1908, was originally a bicycle and parts dealer, and became a distributor of Austin motor vehicles in 1918.
The company floated on the London Stock Exchange in 1973 and now sells cars made by Jaguar, Kia, and Maserati, among others.
However, the company was embroiled in an accounting fraud in 2019 and saw its future thrown into doubt.
The deal comes as many analysts believe listed UK dealers are relatively cheap and are likely to benefit from industry consolidation.