LEX Service and Ford are heading for a motor industry showdown following six months of acquisitions and widespread rumours that the vehicle manufacturer will shortly buy the AA and possibly Arriva Automotive Solutions.

Following the Halifax's entry into the UK fleet market through a 50% stake in Lex Vehicle Leasing — Britain's biggest contract hire and leasing company — last year, Ford last month announced an agreed £1billion bid for Kwik-Fit and on Friday Lex Service announced it had agreed a £437million deal to buy the RAC.

If, as expected, shareholders approve Lex's acquisition of the RAC, the company intends to both expand and rebrand its servicing and used car retailing complexes RAC Autocentres and RAC Autosales, thereby directly competing with Ford's network of fast-fit centres and dealerships.