We are still seeing good levels of activity in the motor deals market, including with the continuation of overseas buyers acquiring more UK motor dealerships that I referenced in my previous articles.
This is borne out by Jardine Motor Group having been acquired by US-based Lithia Motors and the recommended takeover of Lookers by Canadian based Global Auto Holdings (part of the Alpha Auto Group). These new overseas entrants to the UK dealer market, Lithia Motors and Alpha Auto Group, are then looking to use Jardines and Lookers respectively as their platforms for further growth, by acquisition of more dealerships in the UK.
The UK's existing overseas entrants such as Group 1 (US), Super Group (South African), Brayleys Cars (majority owned by AW Rostamani – Dubai based international investor) and the Marubeni Group (RRG, Norton Way and HPL – majority owned by the UK arm of a Japanese based international investor), have also continued to be busy acquiring new dealerships since their original "platform" acquisitions/investments in the UK. The latest purchases (at the time of writing this update) include Group 1 acquiring Fairfield BMW towards the end of last year and Brayleys Cars acquiring Grovebury Kia Dunstable earlier this Summer – and I don't think they are finished acquiring just yet!
UK dealer groups remain active in the deals market too, with the likes of Vertu remaining as key consolidators in the sector.
For the remainder of 2023, we are expecting more consolidation to take place, driven by:
(a) a number of brands (including Stellantis and VWG) having stated they are effectively reducing/regionalising network partners;
(b) economies of scale being more important than ever – "grow or go";
(c) distressed opportunities; and (d) (of course) the UK still being seen as attractive to ove
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.