The UK’s competition watchdog has opened an inquiry into ALD’s planned acquisition of LeasePlan, which it says raises competition concerns.

The ALD–LeasePlan merger would create a leading global player in mobility

The deal was announced in January 2022 and is expected to close by the end of this year – creating a leading global player in mobility. 

But the Competition and Markets Authority (CMA) has expressed concern that it would “result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.

The deal would see ALD acquire LeasePlan for €4.9bn (£4.1bn) in cash and shares, and create a combined firm, dubbed ‘NewALD’, that would “embrace the mobility sector’s global growth megatrends”.

The combined business would be led by ALD CEO Tim Albertsen and will be key in moving the auto sector from ownership to usership models and zero-emission vehicles, according to the firms involved. It will also continue to accelerate towards data-driven digital transformation of the mobility industry.

Tim Albertsen, CEO of ALD, commented: “In the context of today’s transformation of the automotive and mobility sectors, which is proceeding at an unprecedented pace, this proposed transaction is instrumental in the creation of a leading global player in mobility. By combining the multiple strengths of ALD and LeasePlan, gaining size, joining forces in digital and creating a leading provider of sustainable mobility solutions, we would transform our industry and be best positioned to deliver even better solutions and value propositions to our enlarged client base.”

The merger would draw on the two companies’ complementary capabilities, spanning the B2B, B2C and B2E sectors.

ALD, which is listed in France and majority-owned by Société Générale, provides full-service leasing and fleet management services across 43 countries to a client base of large corporates, SMEs, professionals and private individuals. As of mid-2021, it managed 1.76 million vehicles.

LeasePlan has approximately 1.8 million vehicles under management in 29 countries under its Car-as-a-Service banner. Its former CarNext online B2C and B2B used car marketplace was carved out into an independent business in July 2021 after raising €400m (£334m).

At the closing of the proposed acquisition, Société Générale would own around 53% of NewALD while LeasePlan shareholders will hold 30.75%. Société Générale would also commit to remaining the long-term majority shareholder going forwards.

The CMA probe was opened last month and is due to make a phase 1 decision by 15 November, although the watchdog says it can’t guarantee that the decision will be announced on or before this current deadline, as the deadline of a given case may change during the merger assessment process due to different reasons.