Lei Shing Hong, which represents Mercedes in China, has acquired 9 locations across the UK, including sites in Birmingham, Tamworth, and Solihull employing 260 staff.
A further 336 staff work across five sites in the Manchester area. All staff will transfer to the new business.
The Hong Kong group beat more than 20 bidders to win the portfolio for an undisclosed sum.
The deal was advised by the Birmingham office of Knight Frank.
Tom Poynton, a partner in the firm’s Birmingham-based national automotive team, said: “This is the first time Mercedes has disposed of any of its UK sites and is part of a wider trend we are seeing in the sector, with manufacturers choosing to concentrate on making cars rather than selling them.
“We believe this is a landmark transaction in the motor retailing sector and demonstrates global corporations’ confidence in the UK automotive industry.”