One of the UK’s largest auto retailers, Pendragon, has announced that it will sell all of its car dealerships for £280mn and shift its focus to software. This decision brings an end to a tumultuous period for the company, during which its attempts to sell itself were hindered by its largest shareholder.

US group Lithia, already operating 50 sites in the UK, has been named as the buyer for Pendragon’s showrooms. Last summer, Lithia attempted to purchase Pendragon entirely with a bid of £460mn. However, this bid was blocked by Hedin, Pendragon’s largest investor from Sweden.

In response, last autumn, Hedin made its own attempt to purchase Pendragon, but was met with resistance. The acquisition by Lithia will only require a straight majority of Pendragon shareholders to approve, making it more challenging for Hedin to sabotage the deal, as it owns less than a third of Pendragon.