Talks over a merger between two huge car retail firms have been stopped at an "early" stage, it's been revealed.
The discussions would have seen listed firms Greater Manchester-based Lookers merge with Nottingham-based Pendragon to discuss the "potential benefits of a combination of the two businesses and how this could be attractive to both sets of shareholders".
But the East Midlands firm today issued a statement saying while it believed the move would have proven "beneficial", the talks have now stopped.
Sky News has reported that Lookers "snubbed" the approach from Pendragon.
In April, Pendragon, the second-largest motor retailer in the UK, furloughed the majority of its staff and introduced pay cuts for senior staff to protect itself against the Covid-19 crisis.
Since then, the business, which owns Stratstone, Evans Halshaw, Car Store, Pinewood, Quickco and Pendragon Vehicle Management, has been operating with a reduced workforce.
In March, the business showed significant losses of £117.4 miillion after tax - almost £70 miillion more than last year when it lost £50.5 miillion.
A Pendragon statement 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."
Lookers was contacted for a comment.
