SG FLEET is buying LeasePlan’s Australian and New Zealand businesses to create a $2.5 billion company with 250,000 vehicles under management that hints at future alliances with another global business.

The move splits ANZ from Dutch-based LeasePlan’s five regional arms and aims to further lift SG Fleet’s management and leasing services exposure.

SG Fleet will pay $387 million for control of LeasePlan, a portion of it funded after a recent institutional fund-raising entitlement that raised about $72m and was mostly taken up by SG’s South African parent company, Super Group Ltd.

LeasePlan will hold a 13 per cent stake in the ASX-listed SG Fleet Group Ltd.

LeasePlan Corporation said it will receive a combination of cash and shares in SG Fleet and create an international alliance to service LeasePlan Corporation’s clients in the region after completion of the acquisition.

SG Fleet has also signed an international alliance agreement with LeasePlan’s current owner, LeasePlan Corporation NV, which allows the two companies to provide customer referrals and know-how to each other in markets where they do not compete with each other.

“The agreement with LeasePlan Corporation will allow us to ensure a smooth transition for customers and also gives us the opportunity to build a relationship with a major global player,” Mr Blau said.

SG Fleet shares hit a 12-month high of $2.86 on the finalisation of the merger agreement that has been mooted since mid-2020.

SG Fleet CEO Robbie Blau said LeasePlan was “highly complementary” to SG Fleet in terms of business activities, customer profile, product quality and service culture.

“This transformational transaction creates the ability to add scale across operations, funding and procurement activities,” he said.

“Greater scale will also allow us to step up our innovation efforts and create additional value for our customers.”

LeasePlan Corporation CEO Tex Gunning said: “With the announcement of our international alliance with SG Fleet, the combined business will be well positioned to serve its growing customer base and thrive in the Australian and New Zealand markets.

“In addition, LeasePlan Corporation will be able to place greater focus on leading the subscription megatrend and delivering accelerated profitable growth in its core markets.

“We are very proud of the businesses we have built-up in Australia and New Zealand, and wish our colleagues every success as part of SG Fleet.”

SG Fleet aims to complete the transaction in the third quarter of this year, subject to regulatory approvals.

LeasePlan, owned by institutions headed by the Dutch pension fund, last year recorded revenue of $15.2b and has more than 1.8 million serviced vehicles under lease.

It has four regional centres – Europe, UK, Americas and Asia after the sale of its Australia-New Zealand (Oceania) division.

By Neil Dowling