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- Société Générale's (OTCPK:SCGLF) car-leasing entity, ALD SA, agrees to buy LeasePlan Corporation NV for EUR 4.9B ($5.54B) in a cash-and-share agreement, the French lender said a release.
- The new combined entity's fleet of 3.5M vehicles prepares it to take advantage of underlying trends in the space, including the transition from vehicle fleets to electric vehicles, in addition to the growing use of digital technologies to enhance services.
- Société Générale (OTCPK:SCGLF) will retain a 53% stake in the combined entity. This merger is expected to add 5% to the bank's earnings, and ~80 basis points to its return on equity, starting in 2024, the bank notes. It will reduce its group capital by ~40 bps as well.
- ALD will pay EUR 2B in cash to buy LeasePlan from a consortium; LeasePlan shareholders will take a ~31% stake in ALD.
- "We have placed ALD in the best position to take advantage of the tremendous potential for profitable growth in the sustainable mobility market," said Société Générale CEO Frédéric Oudéa.
- Previously, (Dec. 22, 2021) Société Générale and other European lenders issued covered bonds at levels not seen since the pandemic started.