Inchcape has confirmed press speculation that it is interested in buying Musa Motors in Russia.

The UK-based international motor retailer said this morning it is in "early stage, exclusive discussions" regarding the possible acquisition of Musa Motors.

It described Musa Motors as "a leading Russian automotive retailer based in the Moscow region". The transaction, if concluded, is expected to be funded by existing debt facilities. A further announcement will be made when appropriate.

Inchcape already has dealerships in Moscow through a joint venture with Independence Group, and has majority shares in Audi and Peugeot dealerships in St Petersburg. It also owns dealerships in Latvia and Lithuania.