The move means Pendragon is now the largest Jaguar retailer in both Germany and the UK where it holds 20 outlets and dominates the market. Auto Konig was one of the top three Jaguar dealer groups in Germany.
Trevor Finn, Pendragon chief executive, said: “This move strengthens our presence in Germany and our partnership with Jaguar which is developing on a worldwide basis.”
A number of Jaguar dealers in the UK resent Mr Finn's business relationship with Ford Motor Company which continues to develop.
In July Pendragon bought Bauer Motors, the third largest Jaguar dealership in the US, for £6.6m and it is looking to grow its overseas interests. Mr Finn said the company would “stay focused” on Germany and the US for the moment but did not rule out developments in those countries with other carmakers.