The Office of Fair Trading has accepted the decision by Pendragon to sell eight dealerships to avoid anti-competition laws.

The OFT had given interested parties until earlier this month to comment on the decision before total approval was granted. Companies could write in and make their views known.

After receiveing comment, the OFT will not refer Pendragon's merger to the Competition Commission.

Pendragon will sell either a Pendragon or Reg Vardy dealership in four areas:

1. In west Yorkshire (Vauxhall), either Reg Vardy in Leeds or Reg Vardy in Castleford or Evans Halshaw in Wakefield

2. In central Scotland (Vauxhall), Reg Vardy in Motherwell.

3. In Hartlepool (Vauxhall), either Reg Vardy in Hartlepool or Evans Halshaw in Middlesborough

4. In Northamptonshire (Land Rover), either Stratstone in Luton, Reg Vardy in Milton Keynes or Stratstone in Aylesbury.

The OFT said: “The proposed undertakings offered by Pendragon are appropriate to remedy, mitigate or prevent the competition concerns.”