Finally, it’s a "GO" for the planned merger of ALD Automotive and LeasePlan.
In early November, the UK’s Competition and Markets Authority gave its blessing to the takeover of LeasePlan by ALD Automotive. And now it’s been fully rubber-stamped with the European Commission giving approval for ALD to acquire LeasePlan.
However, in the interests of fair competition, ALD Automotive has agreed to divest its interests in Ireland, Norway and Portugal, while LeasePlan has had to do the same in the Czech Republic, Finland and Luxembourg.
Commenting, the European Commission said:
“These commitments remove the overlaps existing between ALD and LeasePlan's activities in the national markets for operational leasing where the Commission had identified competition concerns.
“Following the market test, the Commission concluded that the transaction, as modified by the commitments, would no longer raise competition concerns.”
It added that the decision was conditional on compliance with the Commission’s findings.
Today (November 29 ), ALD Automotive issued shareholders' preferential subscription rights of a €1.2 billion capital increase to complete the acquisition. The acquisition is being fully underwritten by Societe Generale.
The process has been swift.
On January 6, 2022, ALD and LeasePlan signed a Memorandum of Understanding for the acquisition. This was followed on April 22 by the signing of a framework agreement to acquire 100% of LeasePlan. The transaction is due to be completed by end 2022.
The new company will create a leading global mobility player with a total fleet of some 3.5 million vehicles.
In the UK, it will make the combined operation number one by some distance, giving ALD Automotive a fleet of 321,466, vastly ahead of current number one Lex Autolease with a fleet size of 274,107.
Originally posted on Global Fleet Management