With LeasePlan, Societe Generale becomes a world leader in automobile leasing

After a few months of negotiations, it is now done: Societe Generale gets its hands on the Dutch group LeasePlan for 4.9 billion euros. It is through its subsidiary dedicated to automobile leasing, ALD, that the group will make this investment.

“This structuring project would mark a major step in the creation of a world leader in the mobility sector,” said the press release. The new entity which will bear the New ALD name will have 3.5 million vehicles and will further strengthen its number 1 position in Europe. BNP Paribas and its subsidiary Arval are relegated to the background with a fleet of 1.4 million vehicles.

Remain majority shareholder

Within the framework of the Memorandums of Understanding which have been signed, Societe Generale announces that the financing will be carried out in securities and in cash. To the 2 billion euros that will be paid in cash (of which around 1.3 billion will be financed by ALD), the current shareholders of LeasePlan will also receive a 30.75% stake in the new group New ALD.

Frédéric Oudéa, the head of the Société Générale group explains “The activities of the combined entity are intended to become in the medium term a third pillar alongside the businesses, on the one hand, retail and insurance banking and, on the other hand, corporate and corporate banking. ‘investment, and strengthen the balance of its business model ”. With this investment, he thus hopes “Capitalize on the tremendous profitable growth potential of the sustainable mobility market.”

Still according to the bank, this operation would create a lot of value for the shareholders. “With an increase in net earnings per share of around + 20%” for the new ALD in 2023 and “greater than 5% for Société Générale from 2024” ”. According to the terms of the contract, this transaction should be finalized by the end of the year.

Sustained M&A activity

In retail banking, Societe Generale is also dynamic in terms of external growth. While its counterpart ING has decided to withdraw from the French market, the group is openly placing itself as a serious candidate for the takeover of a portfolio estimated at one million customers.

According to the latest information published yesterday, Societe Generale on behalf of Boursorama and Crédit Mutuel Arkéa for its subsidiary Fortuneo have submitted an offer for the takeover of customers of the Dutch online bank. For their part, Crédit Agricole and Crédit Mutuel Alliance Fédérale would have thrown in the towel after looking at the file.

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