Daimler has bought European leasing firm Athlon for €1.1bn from the Dutch firm Rabobank.

The consolidated fleet operations will operate under the Athlon brand and will strengthens the position of Daimler Financial Services as a full service provider, the firm said in a statement.

Frans Janssen, CEO of Athlon International, commented: “The merging of Athlon and Daimler, two strong innovative brands, will positively contribute to our customers’ ability to access an extended product and service range across Europe.”

As a result of the acquisition, Daimler Financial Services strengthens its foothold in Europe with a fleet management portfolio of approximately 340,000 passenger cars and vans.

”Fleet management is a growth market and this acquisition of a strongly positioned and innovative fleet management company is a key step for us in becoming a leading fleet management services provider. It also allows us to enhance fleets with Daimler’s products and mobility offers,” said Bodo Uebber, Board of Management member of Daimler AG responsible for Finance and Controlling and Financial Services.

Klaus Entenmann, chairman of Daimler Financial Services AG, added: “Today, fleet customers do expect a flexible management of their mobility needs across brands around their fleets. Rental, leasing, corporate carsharing and comprehensive reporting are key elements of our fleet management value proposition.”

The acquisition is expected to close in Q4 of 2016, subject to all required approvals and consents being obtained.