BNP Paribas Negotiates Acquisition of Athlon from Mercedes-Benz

Fleet Expansion Through Merger

According to the press release, the merger between Arval and Athlon would create a combined fleet of nearly 2.3 million long-term rental vehicles. This size is slightly less than that of the current market leader, who has 2.6 million vehicles. Arval currently manages a fleet of 1.9 million vehicles and has shown, according to the group, an average annual growth of more than 100,000 vehicles over the last three years. The operation aims to strengthen Arval's presence in its key markets in Europe and to improve its competitive position in long-term leasing.

Financial Impact and Expected Returns

BNP Paribas indicates that the expected return on invested capital from this acquisition would be 18%. The bank estimates that the operation would generate a positive contribution to the Group's net income of around 200 million euros by the end of the third year. This profitability would be based particularly on a high level of cost synergies, resulting from the merging of the operational platforms of the two entities. The group specifies that this operation is part of its strategy to develop profitable platforms in growing markets and to improve the overall profitability profile.

Capital Impact and Acquisition Timeline

The estimated impact of the acquisition on the CET1 core capital ratio is about 13 basis points, according to BNP Paribas. This level is already incorporated into the group's capital trajectory, which targets a CET1 ratio of 13% by 2027. The signing of the deal remains subject to the information and consultation process of the representative bodies of the concerned entities. The completion of the 100% acquisition of Athlon is expected in 2026, after obtaining approvals from the relevant authorities. The parties will communicate later on the progress of the project.