ALD, a long-term car rental subsidiary of Société Générale, will acquire its competitor LeasePlan, European number 1 in the leasing sector, for 4.9 billion euros, according to a press release Thursday, January 6. Societe Generale had indicated last October that it was in negotiations with LeasePlan for a possible “merger” with its subsidiary ALD, specializing in fleet management, long-term vehicle rental and new mobility. Thursday, in a press release, the group announces that two memoranda of understanding have been signed “providing for the acquisition by ALD of 100% of the capital of LeasePlan from a consortium led by TDR Capital with a view to creating a leading global player plan in mobility solutions with a combined total fleet of approximately 3.5 million vehicles “.
This acquisition “envisaged” of LeasePlan, for a total amount of 4.9 billion euros, “would be financed both in securities and in cash”, it is specified. Societe Generale undertakes to “remain the majority shareholder of the new group – named NewALD” – with a participation of approximately 53% of the capital at the closing of the transaction, the shareholders of LeasePlan receiving a participation of 30.75% as part of the payment in securities “, according to the press release.
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“With enhanced investment capacities and differentiating know-how, the combined entity would be particularly well positioned to take advantage of underlying trends in this market”, such as the shift in vehicle fleets to electric vehicles or the growing use of digital technologies, highlights Societe Generale. The group underlines that this transaction “would be highly value-creating for shareholders with an increase in net earnings per share of around + 20% for NewALD in 2023 and greater than 5% for Societe Generale from 2024”.
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