VW mulls acquisition of car-rental group Europcar, report says

Volkswagen Team is in talks to purchase French motor vehicle-rental company Europcar Mobility Team in a deal that would allow for the German automaker to superior capitalize on its fleet, men and women common with the issue explained.

The acquisition would occur as Europcar struggles to cope with the economic fallout of the COVID-19 pandemic, which has weighed on vacation all over the world and sapped need for motor vehicle rentals.

It would signify a reversal for Volkswagen, which sold Europcar to investment agency Eurazeo in 2006.

Volkswagen has attained out to Europcar to convey its fascination in an acquisition and have out because of diligence, one particular of the people said Tuesday. The talks are preliminary and a deal is much from specific specified the financial toll of the coronavirus outbreak on Europcar, the people added.

Europcar, which has market place capitalization of 390 million euros ($441 million) and web personal debt as of the conclude of March of much more than 1 billion euros ($1.1 billion), has also attracted fascination from private fairness corporations, like Apollo Global Administration, the sources additional.

Volkswagen, Apollo and Eurazeo, which presently owns shut to thirty per cent of Europcar, declined to comment.

When Volkswagen divested Europcar in 2006, it explained it could be a mobility services company with no proudly owning a short-phrase motor vehicle retain the services of firm. A new deal for Europcar would allow for Volkswagen to purchase it back at a important price reduction to the three.32 billion euros ($three.6 billion)  it sold it for fourteen decades ago.

Europcar is hoping to keep away from the fate of U.S. peer Hertz Global Holdings, which filed for bankruptcy protection in May well.

Very last month, Europcar explained it secured a 307 million euro ($347 million) funding package to take care of by the coronavirus disaster, which integrated a 220 million euro ($249 million) personal loan guaranteed at 90 per cent by the French condition.