After getting the final approval of the EU Commission last week, leasing giant ALD Automotive is replenishing its capital to finalize the take-over of this other European leasing giant, Dutch LeasePlan, at a discounted price of €4,5 billion instead of the initial €4,9 billion proposed.

Combining both fleets, the companies that will operate under the name of ‘NewALD’ will manage 3,42 million leased vehicles globally. A fleet that is to increase by 6% annually. But to get the green light from the EU, they had to agree that ALD will have to sell its leasing and fleet management businesses in Portugal,  Ireland, and Norway, and LeasePlan in the Czech Republic, Finland, and Luxembourg.

251 million new ALD shares

ALD announced on Tuesday the launch of a share capital increase with shareholders’ preferential subscription rights for approximately €1,2 billion. It will be used to finance part of the acquisition price, together with €600 million from ALD’s parent Société Generale in subordinated debt and 251 million new ALD shares.

In the NewALD company, LeasePlan shareholders would have 30,75%. LeasePlan today is owned by a consortium led by TDR Capital. ALD’s parent company Société Générale would hold 53% of the shares. ALD Automotive Group is active in 43 countries worldwide today and LeasePlan Corporation in 42.

From ownership to subscription models

As announced already in January, NewALD would be led as CEO by current ALD chief Tim Albertsen, “who would be able to rely on two highly experienced management teams with deep pools of talent and a proven track record of fast merger execution.”

At that time, CEO Tex Gunning predicted a new disruptive wave in the automotive sector driven by what is to become one of the world’s biggest leasing giants.

“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,” Gunning added.