A London-based car retailer has continued the expansion of its operations in Russia with an acquisition in St Petersburg.

Inchcape plc bought a further 24.9 per cent stake in a retailer in Russia’s second largest city, giving it sole ownership of the business. The deal was worth $54.8 million (£27.7 million), and was paid in cash funded from its existing debt.

The acquired business, which was sold by Inchcape’s joint venture partner Olimp Group, comprises OOO Orgtekhstroy, an Audi retailer; and Peugeot specialist OOO Concord.

The group bought an initial 75.1 per cent in the businesses last October for £19.1 million in cash.

Inchcape chief executive Andre Lacroix said this acquisition is part of its strategy to build scale in Russia. “The foreign car market grew by 64 per cent in 2007, and we now have 100 per cent ownership of one of the largest automotive retail businesses in St Petersburg.”

The acquisition is also part of Inchcape’s strategy to grow its core businesses as well as developing its operations into emerging markets.

Inchcape has operations in Australia, Belgium, Greece, Hong Kong, Singapore as well as Eastern Europe, the Baltic’s, China and South America. Its other acquisitions in Russia include the £34.5 million takeover of 75.1 per cent of Olimp’s Toyota/Lexus retail business.