Lookers has withdrawn its offer to buy Reg Vardy for 875p per share after rival dealer group Pendragon offered 900p per share on Friday.

The Lookers board said: “After considering its options the Lookers board believes it is in the best interests of its shareholders not to proceed with an offer for Reg Vardy.”

The Lookers’ extraordinary meeting scheduled for February 14 has been cancelled as a result of the announcement.