The combined company is expected to be ideally positioned to take advantage of the shift from vehicle ownership to usership and to electric vehicle fleets
The combined entity is expected to be able to build new digital business models. (Credit: Zach Vessels on Unsplash)
Societe Generale’s ALD has signed a memorandum ofunderstanding (MoU) to acquire Dutch automobile fleet management company LeasePlan in a cash and stock deal worth €4.9bn.
The deal is expected to create one of the leading global players in mobility with a total fleet of around 3.5 million vehicles.
Upon completion of the transaction, French financial services company Societe Generale will remain as majority shareholder in the combined entity, called NewALD, with a 53% stake.
LeasePlan shareholders will own a 30.75% stake in NewALD, which is expected to benefit from complementary capabilities and synergies.
According to Societe Generale, the combined company will be ideally positioned to take advantage of the shift from vehicle ownership to usership and to electric vehicle fleets.
In addition, it will be able to utilise the advancements in digital technologies to enhance the services, the firm said.
Societe Generale CEO Frédéric Oudéa said: “This proposed transaction is a major step for ALD and for the Societe Generale group. Over the past 10 years, thanks to long-term vision and rigorous execution, we have positioned ALD to take advantage of the tremendous growth potential in the sustainable mobility market.”
With a total fleet of 1.7 million vehicles, ALD is a major player in mobility solutions globally, offering full-service leasing and fleet management services across 43 countries.
LeasePlan is a global fleet management and mobility company with a total fleet of 1.8 million vehicles.
The deal is expected to result in a global offer and coverage of all client categories, an increased breadth in terms of products and services, and a large and balanced geographic coverage.
Societe Generale state the combined company will have an opportunity to significantly contribute to the data-driven digital transformation of the sector.
NewALD is expected to be able to build new digital business models, as the deal provides improved capabilities to invest and develop new mobility products and ancillary services.
The combined entity is also anticipated to speed up the deployment of multi-cycle, flexible and multi-modality solutions, by forming new global partnerships around new services for electric vehicles.
Subject to customary closing conditions, including the regulatory and antitrust approvals, the transaction is expected to be closed by the end of 2022.