■ Global Auto Holdings plans to acquire the Danish company K.W. Bruun Import!

Global Auto Holdings is buying Denmark's K.W. Bruun Import, as the auto dealer pushes deeper into Europe.

Global Auto Holdings operates through two principal subsidiaries: Alpha Auto Group in North America and Lookers in the UK and Europe.

Canada's Car Dealer Nears $1.2 Billion Deal in Europe

By Ben Dummett and Anna Hirtenstein, Wallstreet Journal

Global Auto Holdings is nearing a deal to buy Denmark's K.W. Bruun Import for about $1.2 billion including debt, people familiar with the matter said, as the auto dealer pushes deeper into Europe.

The details

A deal, if completed, could be announced as soon as later Friday, the people said.

Closely held Global Auto says it is the largest Canada-based auto retail group. It is well established in both the U.S. and Canada, operating 16 car dealerships in North America offering brands such as Ford, BMW and Honda.

With K.W. Bruun, Global Auto would become one of the largest importers and sellers of cars in the Nordic countries. The family-controlled business is based in Denmark and traces its roots back more than a century. Today it operates in Denmark and Sweden, offering 11 car brands including Peugeot, Citroen, Jeep and Alfa Romeo, according to the company’s website.

The deal would represent Global Auto’s second foray into Europe. Last year it bought U.K. rival Lookers for about ￡504 million, equivalent to $645 million at the time. Through that deal it gained nearly 150 dealerships, plus other assets including a fleet and leasing business.

The rationale

Anemic demand for cars is challenging the ability of Global Auto and other car dealerships to grow. Higher interest rates are making vehicles more expensive to buy, while appetite for electric cars has waned as consumers fret over the driving range of EVs and the relative lack of publicly available chargers.

For the first eight months of the year, car sales globally rose just 1% from a year earlier, according to GlobalData.

Global Auto has said it aims to become a leading global car retailer. It is betting on deals to fuel growth despite the sluggish market backdrop, using them to aHoldingccess new markets and add to the car brands it sells.

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