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Group Auto Holdings has increased its takeover of Lookers offer to £504.2m.
In June Canadian dealer group Alpha Auto Group, a sister company of Group Auto Holdings, tabled a £465m bid for dealer group Lookers.
Shareholders rejected the previous offer.
Lookers Directors intend to recommend “unanimously” that Lookers Shareholders accept the increased offer.
Global Auto Holding now has 28 days to publish an offer document. There will then 60 days for consideration from that date.
In response to the initial offer in June, Mark Raban, chief executive officer of Lookers, said: “Today’s offer reflects the transformational progress that has been made in recent years. We have harnessed our strong market position, enhanced our brand relationships, and executed well against our six strategic priorities.
“[The offer] will create a business of greater scale, and bring together two successful businesses with complementary OEM relationships, and a strong platform to support future growth in the UK.”
Paul Van der Burgh, interim chairman of Lookers, added: “The significant financial and operational progress made by Lookers in recent years demonstrates Lookers’ ability to deliver excellent and sustainable value for our stakeholders.”