EC approves Arval's takeover of GE's fleet business in Europe
The European Commission (EC) has approved the acquisition of GE Capital Fleet Services's European business by Arval Service Lease SA. The EC said that the takeover had a limited impact on the structure of the market, and therefore did not raise any competition concerns.
This means there are now no more obstacles to Arval handling the 160,000 vehicles under contract with GE Capital Fleet Services in 12 European countries, as agreed in a letter of intent signed by both companies last June. Those vehicles, three quarters of which are located in the UK, France and Germany, represent €2.4 billion worth of assets. They bring the total size of Arval, the vehicle leasing subsidiary of BNP Paribas Group, close to 900,000 units.
In the summer of this year, GE sold the larger part of its fleet business off to Element Financial, which is in a global partnership with Arval. The EC's approval of Arval's acquisition of GE's European fleet business seals half of the deal. If relevant competition authorities approve the takeover of GE Capital Fleet Services in the U.S., Mexico, Australia and New Zealand by Element, the Element-Arval partnership will officially control over 3 million vehicles worldwide, becoming the world leader in long-term rental.
“Thanks to this deal, Arval will be the leading leasing company in Europe”, commented Philippe Bismut, Arval's CEO.