A consortium led by Volkswagen is in advanced talks with Europcar Mobility Group to acquire the rental giant.

The VW-led consortium, which includes London-based asset manager Attestor Limited and Dutch mobility provider Pon Holdings BV, has launched a recommended takeover offer for Europcar

The consortium, which includes London-based asset manager Attestor Limited and Dutch mobility provider Pon Holdings BV, has launched a recommended takeover offer for Europcar, based on a tender offer of €0.50 (£0.42) for all outstanding shares and valuing Europcar at €2.9bn (£2.46bn).

This could increase by €0.01 per share if 90% of shareholders take up the bid. The minimum acceptance threshold for the takeover offer is 67% and existing shareholders holding 68% in Europcar have committed to accept the takeover offer.

The consortium would acquire Europcar through a dedicated ‘Green Mobility Holding’ company that would be jointly held by the consortium members, with Volkswagen taking a 66% share.

The deal, which according to reports has been under consideration for the last year, comes after VW sold Europcar to a private investor in 2006 and is the latest move by an OEM to enter the mobility sector.

Volkswagen said the transaction “provides a compelling opportunity to create a leading mobility platform” and would “deliver new and innovative mobility solutions to meet growing customer demand for services complementing car ownership”.

Herbert Diess, CEO of Volkswagen Group, said: “Building a leading mobility platform is a key priority of our recently announced New Auto strategy. With its advanced fleet management capabilities and strong network of stations, Europcar will help accelerate Volkswagen’s delivery of its ambitious mobility services targets.”

Volkswagen added that while it would have a majority shareholding in the joint holding company, it would neither control the consortium nor Europcar, and that the planned structure for the takeover would draw on the strengths of all consortium partners.

“Through partnering with relevant industry experts, we will increase speed on our way to transform Volkswagen Group into a globally leading mobility tech company,” Diess stressed.

Commenting on the deal, which has been recommended by the board at Europcar, Caroline Parot, CEO of Europcar Mobility Group, said: “As an independent company, Europcar Mobility Group is well positioned for growth, supported by its ‘Connect’ strategic roadmap and the general recovery in the travel & leisure market. This agreement has the potential to supercharge this growth, by enabling our group to strengthen its customer proposition, by developing sustainable alternatives to vehicle ownership.

“For our customers as well as for our employees, two global mobility service companies joining forces today makes a lot of sense and has great value creation potential: together, we could have a big impact on how mobility ecosystems transform and adapt to mobility current and future challenges.”

The offer is expected to be completed in Q4 2021 or Q1 2022.