Societe Generale’s car leasing division ALD has signed a memorandum of understanding (MoU) which would see the company acquire 100% of its competitor LeasePlan for $5.5bn in cash and shares.
ALD provides full-service leasing and fleet management services across 43 countries with a total fleet of 1.7 million vehicles. LeasePlan is a fleet management and mobility company worldwide with a total fleet of 1.8 million vehicles and an extensive offering, ALD said this makes it the perfect fit for ALD to shape the industry’s transformation.
LeasePlan’s shareholders will receive $2.3bn in cash as well as shares representing 30.75% of the combined group. The transaction is subject to customary closing conditions.
Tex Gunning, CEO of LeasePlan, said, “The combined business would be instrumental in moving the automotive industry from ownership to subscription models and zero-emission mobility.
“By joining forces with ALD, we combine the best talents in the industry with the investment power needed to meet the next generation mobility needs of our customers. From day one, NewALD would be operating one of the largest fleets of electric vehicles and will continue to set the standard for ESG in the mobility industry.”
Frédéric Oudéa, CEO of Societe Generale, added that the combined entity “will aim to become, in the medium term, a third pillar alongside, on one hand, the retail banking and insurance, and on the other hand, corporate and investment banking businesses, reinforcing the balance of the Group’s business model.”
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