26 September 2023

AutoNation, one of America’s largest retail groups, has joined the race to takeover Pendragon with a 32 pence-a-share offer which matches the current bid from the combined forces of Hedin Mobility Group and Penske.

AutoNation is listed on the New York Stock Exchange, has more than 300 outlets, a turnover in excess of £20 billion and is headed by Brit Mike Manley who used to run Fiat Chrysler.

In a statement by Pendragon, the board said it had received an unsolicited proposal from AutoNation for the entirety of the UK PLC: “The AutoNation proposal remains subject to a number of pre-conditions, including the completion of due diligence. The board will consider the AutoNation proposal and will consult with its shareholders and provide an update in due course.”

The statement added: “There can be no certainty that any firm offer will be made, nor to the terms of any such offer. Shareholders are advised to take no action at this time.”

Pendragon’s biography for CEO Bill Berman lists him as previously being the chief operating officer for AutoNation, “the largest automotive retailer in America”.

The new bid for Pendragon comes a day ahead of the firm’s first-half results and less than a week since Hedin and Penske upped their offer for Pendragon to 32p a share valuing the firm at more than £450m. This offer was itself a counter to an offer by US retailer Lithia to buy the new and used car operations of Pendragon for £250m and leave the Pinewood software business as a PLC.

Pendragon shareholders are set to vote on the Lithia bid on 6 October.

Tags: AutoNation, Hedin Mobility, Lithia, Pendragon, Penske, Pinewood, Pinewood Technologies, SaaS, Sytner