Shares in Lookers PLC (LSE:LOOK), the UK car chain, jumped 34% to 118.62p after it agreed to be taken over in a deal valuing the business at £465.4mln.
The buyer is the Canadian dealer Alpha Auto Group, which is paying 120p, or 35% premium to last night's closing price.
AAG, a Toronto-based car dealership business launched in 2014, has generated impressive revenue and profits despite its relatively small number of dealerships.
Lookers has recommended the all-cash offer to its shareholders.
The acquisition is expected to be completed in late Q3 or early Q4 of this year. AAG has the backing of 42% of shareholders.