Auto Trader (AUTO) has agreed a joint venture with Cox Automotive to create a digital auction service for wholesale vehicles. Subject to Competition and Markets Authority clearance, Dealer Auction will be designed to provide fleet companies, manufacturers and retailers with a convenient way to dispose of their vehicle stock.
IC TIP:
Sell
at
458p
Auto Trader – which will own 49 per cent of the joint venture – will contribute assets valued at £28.7m and pay £19.7m in cash to Cox Automotive, which will own the remaining stake. The adjusted cash profits of the business being transferred by Auto Trader – Smart Buying – were £2.5m during the year to March.
