INCHCAPE, the international automotive services group, is to sell its 49% interest in Toyota (GB) to Toyota Motor Corporation for £42.1 million. Cash from the sale will be used to reduce Inchcape's debt, but will also provide funds for investment in new areas of business.

The deal gives TMC full control of Toyota (GB) and makes it the exclusive UK distributor of Toyota and Lexus vehicles, ending an agreement that Inchcape would keep its share of Toyota until 2007. Completion of the sale is expected by September.

Inchcape's other interests in the UK include its leasing business MEVC and Kenning Leaseline, along with internet car retailing service Autobytel.