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Sky News reported Monday that Lithia Motors & Driveway (NYSE:LAD) is in advanced talks to buy Jardine Motors, one of Britain’s biggest luxury car dealership groups.
The American car dealership giant is said to be within weeks of completing a deal to buy its U.K.-based peer for around £300 million (£1 = $1.24).
However, the reports state that an insider told them that the deal is still under discussion and could still break down.
Jardine Motors is owned by Jardine Matheson Holdings (OTC:JMHLY), a Hong Kong-headquartered conglomerate, which owns assets such as the Mandarin Oriental hotel chain and Hong Kong Land.
If a deal is completed, it will provide Lithia with a significant foothold in the U.K. market, with access to luxury car brands such as Ferrari (NYSE:RACE) and Maserati.
Sky’s sources told them that Lithia would use Jardine Motors as a platform to expand.
Despite a decline over the last year, Lithia’s share price has rallied in 2023, rising almost 16% in the year-to-date.
