Global Auto Holdings plans to buy British car dealership chain Lookers for about 465 million pounds ($595 million) in cash.
Lookers is Europe’s fifth-largest auto retail group, according to Automotive News Europe’s Guide to Europe’s Biggest Dealers.
Global Auto Holdings values Lookers at 120 pence per share, a premium of 35 percent to the stock’s closing price on Monday.
Global Auto Holdings, an entity related to privately-owned Canadian car dealer network Alpha Auto Group by having the same owner, said the acquisition enables its entry to the U.K. market and supports its bid to become a global auto retailer.
Lookers directors said they intend to unanimously recommend the offer to shareholders.
Lookers, which sells new and used cars and vans and offers after-sales services, in April raised its 2023 profit forecast, supported by robust trading in used vehicles, stable margins and improvement in supply.
Shares in Lookers surged as much as 35 percent to their highest level since September 2017.