SocGen (SOGN) car rental division ALD acquires Leaseplan for 4.9 billion euros

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Societe Generale’s (SocGen) car rental division ALD has agreed to buy rival LeasePlan for € 4.9 billion ($ 5.5 billion, £ 4.1 billion), the company said on Thursday. French bank.

The new deal will give SocGen more scale as the rental market shifts to electric vehicles.

In a statement, the bank said it would create a new company with a combined fleet of around 3.5 million vehicles, in which it would own 53% of the capital, and increase its own net profit per share by more than 5 million. % from 2024..

The deal comes four and a half years after SocGen launched a stake in ALD – and after the bank raised funds by selling assets such as asset management arm Lyxor.

ALD shares were up 7% early in the session while SocGen shares were 0.8% higher following the update.

Long-term vision

Frédéric Oudéa, CEO of Société Générale, declared: “This transaction project is a major step for ALD and for the Société Générale group.

“Over the past 10 years, through a long-term vision and rigorous execution, we have positioned ALD to take advantage of the tremendous growth potential of the sustainable mobility market.

“To actively support the 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 the one hand, retail banking and insurance. , and on the other hand, companies and investment banking activities, strengthening the balance of the group’s economic model, ”he added.

Oudéa also underlined that the acquisition project is fully in line with the group’s strategy of generating profitable and sustainable growth and strong value creation for its shareholders.

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