Volkswagen allowed acquisition of car rental company

The car makers, Volkswagen and Fleet Investments BV have been given the green light by the European Union to move ahead with their proposed buy-out of the a car leasing/rental firm. The commission set up by the European Union to monitor such purchases has concluded that there will be no unfair monopoly if the two purchase LeasePlan and healthy competition would still exist within the European area.

LeasePlan are a large European business that handles all areas of the car rental and leasing market. They offer short term rentals, yearly leasing vehicles, and brokerage on insurance and also finance leasing to companies. They are the leading company within the European Union and have held their banking license since the early 1980s, which has helped them with financing.

The Volkswagen Group currently owns a 50 per cent stake in the company along with two other shareholders that make up the other half, but they will sell their investment to Fleet Investments BV. This will give both buyers and equal share in the profitable group that has been operating for many years now.

The European Commission also rules that the effective buy-out of LeasePlan would not affect the business they do with Volkswagen and gave the go-ahead.