Volkswagen and German bank Metzler have sold their shareholding in LeasePlan to a consortium of investors for €3.7bn.

LeasePlan has been sold to a consortium of investors for €3.7bn

The consortium is composed of a group of long-term responsible investors and includes leading Dutch pension fund service provider PGGM, Denmark’s largest pension fund ATP, GIC, Luxinva SA, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), the Merchant Banking Division of Goldman Sachs and investment funds managed by TDR Capital LLP.

LeasePlan said the consortium supports its existing long-term strategy and growth ambitions and recognizes the expertise of its workforce as a key asset for successfully executing this strategy.

The leasing giant added that it would continue its drive for the delivery of high quality fleet management and driver mobility services for its clients.

CEO Vahid Daemi said: “Established in 1963, we have grown to become the world’s leading global fleet management and driver mobility company. Today, our global franchise manages some 1.5 million multi-brand vehicles and provides global fleet management and driver mobility services in 32 countries. The change of ownership announced today marks a new era for our company and will enable LeasePlan to continue our successful journey and focus on executing our long-term strategy and growth ambitions. We remain fully committed to providing high quality and innovative fleet management and driver mobility services to our clients worldwide.”

According to Reuters, as VW has its own in-house leasing business, VW Leasing GmbH, it had become harder to justify the 50% stake it has had in LeasePlan since 2004 in line with its plans for cost cuts and a refocusing of the group.

Subject to approval by the competent regulatory and anti-trust authorities, the closing of the transaction is expected by the end of this year.