SOCIETE Generale’s leasing arm, ALD Automotive, has signed a memorandum of understanding to purchase LeasePlan for nearly €5bn. The newly combined company will be led by Tim Albertsen, pictured above, as CEO.
The combined vehicle parc of ALD (1.68m) and LeasePlan (1.8m) would make NewALD a truly global player with 3.5m vehicles in the mobility sector, positioned to take advantage of the shift to usership over ownership; the increasing digitisation in the market; and the transmission to zero emissions and sustainable mobility.
The purchase was led by TDR Capital and trailed in Broker News back in October.
Today marks the beginning of a new chapter in our history as a first step towards creating NewALD. In the context of today’s transformation of the automotive and mobility sectors, which is proceeding at an unprecedented pace, this proposed transaction is instrumental in the creation of a leading global player in mobility. By combining the multiple strengths of ALD and LeasePlan, gaining size, joining forces in digital and creating a leading provider of sustainable mobility solutions, we would transform our industry and be best positioned to deliver even better solutions and value propositions to our enlarged client base. This transaction would create multiple opportunities to the joint management teams and talents of both companies, across geographies, underpin our focus on sustainability with a clear path to zero emissions mobility and not least deliver strong shareholder returns over the cycles. We are all very excited about the prospect of being part of this new venture.Tim Albertsen, chief executive officer, ALD
What does this mean to brokers funded by ALD and LeasePlan?
Both LeasePlan and ALD Automotive are significant funders in the leasing broker channel, and as yet there is no indication as to how this will affect current UK operations.
However, NewALD is planning an Integration Management Office (IMO) which will be set up in 2022, to “leverage the best talents of the two entities” which would finalise a joint migration plan.
Part one of this migration plan would be complete within 18 months – which is being called the ‘interim period’. The company would then move towards a full digital operating model.
Tex Gunning, chief executive officer of LeasePlan, added:
The combined business would be instrumental in moving the automotive industry from ownership to subscription models and zero-emission mobility. By joining forces with ALD, we combine the best talents in the industry with the investment power needed to meet the next generation mobility needs of our customers. From day one, NewALD would be operating one of the largest fleets of electric vehicles and will continue to set the standard for ESG in the mobility industry. I am very proud of all LeasePlanners for bringing our business to where it is today. We are looking forward to working with the excellent team at ALD and taking our combined business into the exciting future of mobility.
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.