CAR retailer Dixon Motors is to be snapped up by Royal Bank of Scotland.

Lombard North Central, a subsidiary of RBS, has agreed to pay £109.7m for the Doncaster chain of car showrooms.

The 300p-per-share deal will ramp up Lombard's motor business. It already owns insurer Direct Line and sells cars via its Jamjar venture, which Dixon supplies.

Lombard managing director Chris Sullivan said the acquisition was a "logical extension of the business".

He added: "The addition of Dixon to Lombard's existing vehicle management and financing operations will create a new platform from which to expand the range and quality of services to our customers."

Lombard has already received undertakings to accept the offer from investors representing 59.3 per cent of Dixon's share capital.

Dixon chairman Donald Driver said the deal was "good value" for shareholders.

Dixon was formed by Paul and Simon Dixon, father and son, who are now chief executive and group managing director respectively.

As at December 31, Dixon had 94 car and motorcycle retail sites across the UK and employed more than 3,600 staff.