Established in 1908, Lookers Limited (formerly Lookers plc) represents over 30 different manufacturers in over 150 dealerships, selling a huge range of car types throughout the UK and Ireland. It is now one of the top three moto retailers in the UK.

In 1973, the company achieved a milestone by being publicly listed on the London Stock Exchange (LSE). Now if you enter LOOK (Lookers’ ticker symbol) in the search box on the LSE, you’ll get no result. Why is that?

What’s happening to Lookers’ shares?

In 2020, just a few months after the first lockdown, Lookers’ shares were suspended from the stock market after the company failed to deliver its 2019 results on time.

In June 2023, Alpha Auto Group, a Canadian car dealership chain, made an agreed offer to acquire Lookers. Lookers chairman Paul Van der Burgh said this offer represented an attractive opportunity for their shareholders to “realize cash now for their investment at a significant premium to the prevailing share price”.

In August 2023, the Financial Conduct Authority (FCA) approved the deal.

In September 2023, the deal valued the business at £504.2m and was approved by shareholders.

On October 9, 2023, the deal became effective and Lookers’ shares were delisted from the LSE.

Who is Alpha Auto Group?

Since its launch in 2014, Alpha Auto Group (AAG) has expanded to encompass only 22 locations across the United States and Canada. However, despite the relatively small number of dealerships, AAG achieved impressive financial results. In 2022, the company recorded a turnover of $1 billion and generated EBITDA profits of approximately $100 million.

Thanks to its strong financial performance, AAG has established itself as one of the largest and most profitable dealer groups in Canada.

Why did AAG want to buy Lookers?

According to the recommended cash offer announcement, which was published on the LSE on June 20, 2023, AAG expressed its view that Lookers is a vital pillar in its vision of becoming a prominent global auto retail group. AAG, through its bidding vehicle named ‘Global Auto Holdings Limited,’ believes that the acquisition of Lookers will contribute to geographic diversification and stability for both companies. This is due to their strong market positions in both the UK and North America.

In summary, AAG has aspirations of becoming a global player in the automotive industry and has identified the UK market as an ideal opportunity to expand its thriving operations.