According to Bloomberg, BNP Paribas is in late-stage negotiations with Mercedes over the acquisition of its European leasing subsidiary Athlon. The deal would further consolidate the fleet management landscape after ALD Automotive and LeasePlan merged to Ayvens.
Earlier this year, news broke that Mercedes was scouting for a possible buyer for its leasing arm, Athlon, which Mercedes had acquired from Dutch Rabobank in 2016. Today, Athlon operates roughly 450,000 vehicles in some 20 European countries.
Wrestling residual values
The sale must raise some fresh cash as the German carmaker copes with dwindling profits and the high cost of adapting to electric mobility while facing rising competition from Asia.
Likewise, as fleet companies wrestle with lower-than-expected residual values of EVs, the market seeks consolidation to streamline businesses. In that sense, it shouldn’t be a surprise that a rival fleet group shows interest. BNP Paribas already runs leasing operations through its subsidiary Arval.
Sources familiar with the matter told Bloomberg that the transaction could value Athlon at around €1 billion. That’s lower than the €1.1 billion price paid by Mercedes ten years ago. Although BNP Paribas would be a suitable candidate, several other interested parties are reportedly circling the asset.
Remaining third
For BNP Paribas, acquiring Athlon would significantly strengthen its position in the sector, complementing its existing leasing operations. Arval already sits among Europe’s most prominent players, and integrating Athlon’s fleet would accelerate BNP’s growth and extend its reach into key markets.
However, the new integrated group would only secure Arval’s third position in the ranking, with a combined fleet of slightly more than 2.1 million vehicles. Both Ayvens and Volkswagen Financial Services hold more than 3 million vehicles.
Neither BNP Paribas nor Mercedes-Benz has issued a formal comment on the negotiations. A Mercedes spokesperson reiterated only that the company “continuously reviews strategic options” for its portfolio, including Athlon. BNP declined to comment.
