"Landep News"
BMW
This car-leasing unit brought to ING €637 million and became part of the famous German luxury automaker which has been making a lot of efforts to develop its area of mobility services. The CEO of Alphabet stated that the company will increase the “number of car contracts up to 540,000 and this will consolidate its competitive lead on the European fleet management market”. He also said that the deal will be closed in the fourth quarter and is now in the phase of regulatory approvals.
BMW is another automaker company which just like Volkswagen AG’s Audi brand or Daimler AG’s Mercedes-Benz unit is interested in expanding its businesses beyond the selling cars division with the intention of creating additional revenues. The company is already considering some complex projects which include car-rental projects especially created for urban areas and all the other related services.
This successful transaction follows another one made in February when BMW decided to invest in My City Way located in New York. The transaction was finalized after the company set up a venture-capital company, the BMW i Ventures with equity of $100 million. The My City Way Company provides mobile application software for 40 American cities. They mostly handle the information about parking spaces, public transportation and local entertainment offerings.
The plan of the Alphabet Company is to offer broadened services to its customers in 16 countries of the European continent. ING Car Lease is known for offering its car leasing and fleet management services in eight European states with the help of its 240,000 cars. This company has around 1,200 employees and its balance sheet on December 31, 2010 announced €3.5 billion profit.
The ING officials said that the sale of the car-leasing unit is part of its actions to “streamline their business” and simplify the firm. The Dutch company is following the restructuring program imposed by the European Commission who asked ING to “divest its insurance business and a part of the bank assets”. By selling all the assets included in this program, ING will obtain nearly €1.3 trillion and will become an European-focused bank which will obtain the majority of its profit in the Benelux states.
Last month, Capital One Financial bought the Internet bank, ING Direct USA, from ING and had to pay to the Dutch company $9.0 billion. The investors were satisfied with this deal, but some analysts said that ING could have obtained a better price.
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