The world’s biggest Mercedes retailer has successfully acquired nine Mercedes-Benz dealerships, including four in the West Midlands.
Advised by the Birmingham office of Knight Frank, the deal sees Hong Kong-based Lei Shing Hong, which represents the Mercedes marque in China, South Korea and Cambodia, gain its first foothold in the UK.
The four sites in the West Midlands employs over 260 staff and a further 336 staff across five sites in the Manchester area. All of which will transfer to the new business.
Commenting on the acquisition, Tom Poynton, a partner in Knight Frank’s Birmingham-based national automotive team, said: “This is the first time Mercedes has disposed of any of its UK sites and is part of a wider trend we are seeing in the sector, with manufacturers choosing to concentrate on making cars rather than selling them.
“We believe this is a landmark transaction in the motor retailing sector and demonstrates global corporations’ confidence in the UK automotive industry.”
The firm’s automotive team undertook pre-acquisition due diligence for Lei Shing Hong. The group outbid more than 20 bidders to get the portfolio for an undisclosed price.