Société Générale expands car leasing business with takeover of billions – share increases
The French bank Société Générale is repositioning its vehicle leasing and fleet management business with a billion-euro takeover.
The fleet manager ALD Automotive, which belongs to the group, wants to take over the Dutch competitor Leaseplan for 4.9 billion euros, the French bank announced on Thursday in Paris. The seller is a consortium led by the financial investor TDR Capital. Leaseplan was part of the Volkswagen Group until it was sold in 2016.
The French said the price for the takeover will be partly paid in shares. After the transaction, Société Générale (SocGen) will hold a little more than half of the shares in the merged leasing company, which will then manage 3.5 million vehicles. Most recently, SocGen held almost 80 percent of ALD. The bank bought the company in 2001 and floated it on the stock exchange in 2017. The stock market value of ALD was most recently around 5.3 billion euros.
At EURONEXT, the SocGen share goes up 1.81 percent to 32.835 euros.