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Volkswagen considering buying majority stake in Europcar

Published 06/24/2021, 06:41 AM
Updated 06/24/2021, 08:36 AM
© Reuters. FILE PHOTO: A Volkswagen logo is seen as it launches its ID.6 and ID.6 CROZZ SUV at a world premiere ahead of the Shanghai Auto Show, in Shanghai, China April 18, 2021. REUTERS/Aly Song

© Reuters. FILE PHOTO: A Volkswagen logo is seen as it launches its ID.6 and ID.6 CROZZ SUV at a world premiere ahead of the Shanghai Auto Show, in Shanghai, China April 18, 2021. REUTERS/Aly Song

BERLIN (Reuters) -Germany's Volkswagen (DE:VOWG_p) confirmed on Thursday it is considering acquiring a majority stake in car rental company Europcar as it seeks to tap into the trend for consumers to rent rather than own a vehicle.

Volkswagen said it was considering a potential transaction, together with investors Attestor and Pon Holdings, although considerations were at a very early stage and no decisions had been taken.

Company sources told Reuters a year ago that VW wanted to buy back Europcar, which it sold to French financial investor Eurazeo (PA:EURA) in 2006 for 3.3 billion euros ($3.94 billion), including debt.

Europcar said on Wednesday it had rejected a takeover bid, without specifying the bidder, saying the 0.44 euro per share price offered was too low.

The car rental business has taken a heavy hit from the coronavirus pandemic given the collapse of the travel market.

Europcar's shares were up 5% on Thursday at 0.4550 euros.

Volkswagen said buying Europcar was one of several options it was considering to give the company access to a rental platform that would support its "long-term mobility vision" and strengthen its range of products and services.

Company sources have suggested that Volkswagen could use Europcar's network of rental stations to help it become a broader provider of different mobility options.

© Reuters. FILE PHOTO: Cars are seen at car rental companies Avis and Europcar outside Paris Charles de Gaulle airport in Roissy-en-France during the outbreak of the coronavirus disease (COVID-19) in France May 19, 2020. REUTERS/Charles Platiau/File Photo

Bloomberg news agency had already reported that Europcar had rejected a $2.6 billion takeover bid from Volkswagen.

($1 = 0.8377 euros)

Latest comments

I don't know about renting cars in Europe but in the USA it is a giant PITA. many hurdles, cars unavailable, fees doubled in one year. Much easier and cheaper to use a car sharing service like Turo
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