Williams and Purvey, which represents Mitsibushi, Suzuki, Daihatsu and Mercedes.

HW&P's managing director the Hon. John Irving Pearman said yesterday that the merger, which will take place over three years, was in the best interests of both companies.

"The amalgamation will bring together assets and property which can be better utilised in the interests of both parties,'' he said.

Under the terms of the agreement, all of the businesses currently operated by Young's will continue as they are for the time being.

Mr. Pearman said both companies would keep their separate identities, but said that Young's would become, to all intents and purposes, a subsidiary of HWP.

The companies currently have properties next to each other on East Broadway, in Hamilton, where HW&P operates a gas station and showroom and Young's runs a motorcycle repair operation.

One immediate effect of the deal is that HW&P has taken over part of Young's warehouse space off Pitt's Bay Road, Pembroke, to store its new vehicles.

"HW&P has needed a permanent home to store its new vehicles for some time,'' said Mr. Pearman.

The amalgamation will further strengthen HW&P's hold on the motor market in Bermuda, where it is already the largest dealer, offering a wide range of cars and motorcycles.

No-one from the Young family was available for comment yesterday.