ALD to buy LeasePlan
ALD, the car leasing arm of French multinational investment bank and financial services company Societe Generale , is buying its competitor LeasePlan from a consortium led by TDR Capital in a deal valued at $5.5 billion. LeasePlan’s shareholders will receive 2 billion euros in cash as well as shares representing 30.75% of the combined group.
According to Societe Generale, the new combined entity, which will have a fleet of 3.5 million vehicles, would be well positioned to take advantage of trends including the rise of car sharing and more widespread use of electric vehicles. In addition, the new unit would eventually become a third pillar alongside Societe Generale’s retail-banking and insurance business lines, as well as its corporate and investment banking units.
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. In line with Societe Generale group’s corporate purpose and notably to actively support economies as well as our customers in their energy transition, 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. More generally, this proposed acquisition is fully in line with the Group’s strategy to deliver profitable and sustainable growth and strong value creation for its shareholders.” – Frédéric Oudéa, CEO of Societe Generale.
“Today marks the beginning of a new chapter in our history as a first step towards creating NewALD. In the context of today’s transformation of the automotive and mobility sectors, which is proceeding at an unprecedented pace, this proposed transaction is instrumental in the creation of a leading global player in mobility. By combining the multiple strengths of ALD and LeasePlan, gaining size, joining forces in digital and creating a leading provider of sustainable mobility solutions, we would transform our industry and be best positioned to deliver even better solutions and value propositions to our enlarged client base. This transaction would create multiple opportunities to the joint management teams and talents of both companies, across geographies, underpin our focus on sustainability with a clear path to zero emissions mobility and not least deliver strong shareholder returns over the cycles. We are all very excited about the prospect of being part of this new venture.” – Tim Albertsen, CEO of ALD.
“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. I am very proud of all LeasePlanners for bringing our business to where it is today. We are looking forward to working with the excellent team at ALD and taking our combined business into the exciting future of mobility.” – Tex Gunning, CEO of LeasePlan.
