The French bank said on Thursday that BNP Paribas is in exclusive negotiations with German automaker Mercedes-Benz to purchase its car-leasing business Athlon. The deal is estimated to be worth around 1 billion euros ($1.17 billion).
By adding almost 400,000 vehicles to its fleet under full-service leasing, the acquisition will improve BNP's standing in the European auto leasing market through its Arval business, according to the company.
There are presently 1.9 million cars in BNP's Arval division's fleet. "This is a very important transaction, as it will enable the group to create the joint European leader in long-term car rental," Thierry Laborde, chief operating officer of BNP, stated in an interview.
With Athlon's fleet added, BNP Paribas would have nearly 2.3 million vehicles under full-service leasing, closing the gap with European market leader Ayvens, the listed car-leasing division of Societe Generale, which at the end of September had a funded fleet of roughly 2.6 million vehicles. Additionally, Ayvens manages a fleet of 655,000 automobiles.
Under full-service leasing, the provider owns the vehicles, combines financing and management into a fixed monthly fee, and usually resells the vehicles at the end of the contract.
In general, fleet management refers to managing vehicles a company already owns, including services like maintenance and repairs, while the client retains ownership and risk.
Mercedes-Benz is investing in its main business with the money it received from a number of divestitures. The acquisition supports BNP's goals to grow in the car leasing industry. BNP is the largest bank in the euro zone in terms of assets.
According to the French lender, the integration would result in cost savings and an 18% return on invested capital. By the third year following completion, the deal would increase the group's net income per share by over 200 million euros.
With the anticipated Common Equity Tier 1 ratio impact of roughly 13 basis points already included into the group's capital trajectory of 13% by the end of 2027, BNP stated that the purchase will have no effect on its capital position.
According to Laborde, the group anticipates signing a sale and purchase agreement between February and March of next year. Subject to regulatory approvals, the deal is anticipated to close in the third quarter of 2026.
