LeasePlan and ALD Automotive in merger talks

The owners of ALD Automotive, French bank Societe Generale, are holding talks with LeasePlan about a possible merger to create a leasing and mobility powerhouse.

LeasePlan is one of the world's largest leasing companies, with approximately 1.9 million vehicles in more than 30 countries. In the UK, LeasePlan was ranked as the fourth largest leasing company, according to FN50 2020, with a risk fleet of 177,000 cars and vans.

ALD Automotive operates in 43 countries, with a similar sized global vehicle parc to LeasePlan. It was ranked fifth in FN50 2020, with a risk fleet of 145,000 cars and vans.

The combined business would make it the largest vehicle leasing company in the UK.

In a statement, Societe Generale said: “There can be no certainty at this stage that these discussions will result in any agreement or transaction.

“Further announcements will be made when appropriate according to applicable laws.”

ALD Automotive has made no secret of its desire to be a leader in mobility. CEO Tim Albertsen says on the company website: “Our ambition is simply to become a fully integrated sustainable mobility provider and the global leader in our industry.

Its Move 2025 strategy highlights an ambitious growth plan. “We have our sights set on 2.3 million contracts by 2025 - thanks to our 8% compound growth over several years,” says Albertsen.

LeasePlan wants to become the world’s first fully digital Car-as-a-Service company. As a result of the trend from vehicle ownership to subscription models, it says it expects accelerated growth in all market segments, including international, domestic corporate, SME and private.

Its ability to capture the "significant growth" available, it says, is inextricably linked to its ability to deliver better digital services than its competitors at a lower cost.

"That’s why our strategy is to transform to a completely digital business model, becoming the world’s first fully digital Car-as-a-Service company," it says.

LeasePlan recently sold its Australian and New Zealand-based businesses to SG Fleet.