Scandinavian car dealer Hedin Mobility has withdrawn its takeover approach to UK peer Pendragon Group (LSE:PDG), blaming challenging market conditions and an uncertain economic outlook for the decision.
Hedin made a tentative offer of around 29p per share in September, which Pendragon said it was considering while also carrying out a strategic review of the whole business.
In a statement today, Pendragon noted that it had granted Hedin due diligence access to allow it to make a decision on whether to go ahead with the offer.
“The board remains confident about the long-term prospects of Pendragon. This process has highlighted the value of Pendragon and the Board will continue to explore opportunities to maximise value for its shareholders,” the company said.
Pendragon also noted that the current economic backdrop was challenging, but added that it expects to deliver group underlying profit before tax in line with expectations for the current financial year.
Shares in Pendragon dived 26% to 20.9p.