1:37 pm, January 23, 2023
Jardine Motors could be bought by US dealer group Lithia in an acquisition said to be worth some £300m, it was revealed today.
The franchised dealership, which is part of the Jardine Matheson Holdings conglomerate, is said by Sky News to be in advanced talks with Lithia Motors, which tried to buy Pendragon last summer but was blocked by the Hedin Group.
According to Sky News, Lithia – valued at more than $6.5bn (£5.3bn) on the New York Stock Exchange – is within weeks of inking the deal.
If it goes ahead, it’ll give Lithia a massive foothold in the UK – Jardine has some 50 showrooms here, with franchises for luxury brands such as Aston Martin, Ferrari, Maserati, McLaren and Porsche.
Lithia is the US’s second largest automotive retailer, boasting more than 250 locations.
David Kendrick, partner at UHY Hacker Young, told Car Dealer: ‘This would be an incredible move from Lithia.
‘They have made no secret of their desire to move to the UK and I’d argue that Jardine hold one of the most attractive portfolios in the UK.
‘Purchasing this from Jardine would be a shrewd move but I don’t believe it would come cheap, and there will be some serious OEM approvals needed.
‘A new player to the market certainly would be welcome. As ever, interesting times with plenty going on.’
A Lithia spokesman was quoted by Sky News as saying: ‘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.
‘Jardine Motors Group UK is one of the UK’s leading automotive retailers and Lithia firmly believes that a combination of the two businesses will help to deliver significant value for employees, partners and customers.
‘Lithia views the potential acquisition of Jardine Motors as a platform for future growth in the UK and plans to invest in the business, working with Jardine Motors’ market-leading management team to build on the strong momentum the group has generated in recent years.
‘Discussions around a potential transaction are ongoing and a further update will be issued in due course.’
However, according to Sky News, an insider said the deal wasn’t cut and dried and it could still fall apart.
Jardine Motors – whose latest available accounts show it made a £28m operating profit in 2021 – wouldn’t give a comment.
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