UPDATED: Lookers rejects Pendragon merger bid
03 May 2020
Pendragon has confirmed it approached Lookers about a merger in the last fortnight. Lookers rejected the approach because of the ongoing FCA investigation and the coronavirus crisis, according to a report by Sky News.
The financial statement by Pendragon said: “The company confirms that it held outline discussions with Lookers suggesting they might explore the potential benefits of a combination of the two businesses and how this could be attractive to both sets of shareholders.
“While Pendragon believed that such an exploration would have proved beneficial, these early discussions have now ceased.
“Pendragon remains well-positioned having already taken significant steps to reshape the business and to cut costs both in advance, and as a result, of the recent events which have temporarily curtailed business activity. And, as previously announced, Pendragon continues to benefit from the support of its stakeholders during the current disruption.”
A Pendragon shareholder has indicated the company may consider an alternative merger partner.
Pendragon launched a hostile takeover bid of Lookers in 2006, which was ultimately rejected.