LMP Automotive Holdings Inc.'s revised agreement to acquire a 70 percent stake in eight Atlantic Automotive Group dealerships in New York is off after the parties "mutually" agreed to terminate the deal.
The used-vehicle retailer and vehicle subscription provider said the proposed transaction — trimmed last month following October's announcement for LMP to buy a 70 percent stake in 16 dealerships — was being canceled "primarily due to contiguous dealership location matters that the parties could not overcome," LMP COO Richard Aldahan said late Thursday in a news release.
Last month, Aldahan told Automotive News the slimmed-down agreement was made to adhere to automaker preferences that retailers not own contiguous dealerships of the same brand. He said then that manufacturers typically don't want a single owner with multiple same-brand stores in a concentrated geographic area.
Atlantic CFO Rob Dito told Automotive News that the companies reached the mutual decision within the past few days and that there was "a lot to overcome."