Arval signs MoU to buy GE Capital Fleet Services in Europe
(2 July 2015 – France) BNP Paribas announced on 30 June that its wholly-owned vehicle service leasing business, Arval has signed a Memorandum of Understanding (MoU) with GE Capital to potentially acquire its European fleet management activity.
The scope of this acquisition covers more than 160,000 vehicles in 12 European countries, of which France, Germany and the United Kingdom represent more than three quarters; the vehicles assets amount to €2.4 billion (A$3.5 billion) as of Q1 2015.
This transaction will significantly reinforce the market position of Arval with a leading position in Europe and around 900,000 vehicles worldwide.
This deal is part of a global transaction by which Element Financial Corporation, Arval’s partner in North-America, has agreed to buy GE Capital Fleet Services’ businesses in the United States, Mexico, Australia and New Zealand.
Through these deals, Arval and Element Financial significantly strengthen the Element-Arval Global Alliance’s reach to become a global leader with more than 3 million vehicles in some 40 countries.
Thierry Laborde, deputy chief operating officer of BNP Paribas and Head of Domestic Markets, said: “For BNP Paribas Group, this acquisition will enhance the presence of our fleet management business on the European markets.
“This transaction further illustrates the Group’s active strategy to strengthen the leadership of its specialized activities in Europe.”
Philippe Bismut, chief executive of Arval, said: “Arval will become the leader in full service leasing in Europe and I am sure that our clients will highly benefit from our geographical coverage, expertise and scale.
“We are also enthusiastic about this new cooperation with Element Financial and we are deeply convinced that this will bring value to both partners.”
The completion of the transaction is targeted in the fourth quarter of 2015, subject to the execution of the final documentation after work council consultations, and to necessary regulatory approvals.
It is expected to have only a minor impact on the Group Common Equity Tier 1 ratio, partly offset by the recent sale of a stake in Klepierre.
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