Toyota Moves to Block Republic Acquisition

Toyota Motor Corp. said it’s challenging Republic Industries Inc.’s acquisition of a Lexus dealership in California. Toyota filed a petition with the California New Motor Vehicle Board stating it’s withholding consent for the transfer of the Anderson Lexus dealership in Fremont. Last week, Republic said it agreed to buy the Anderson Dealership Group, which includes Lexus as well as other makes of cars, for $40 million. If the Motor Vehicle Board rules in Toyota’s favor, it may be able to block the transaction, though the legal grounds for that aren’t clear. Republic has been rapidly expanding its new-car dealership operations, making about 150 acquisitions around the U.S. since late 1996 and creating the largest dealership chain in the nation. Fort Lauderdale, Fla.-based Republic also operates a chain of used-car dealerships under the AutoNation USA brand. Republic shares fell 38 cents to close at $24.63 on the NYSE.