Société Générale Buying Rival LeasePlan for $5.5B

Société Générale’s Paris-listed car leasing business ALD on Thursday (Jan. 6) announced it is buying TDR Capital-owned rival LeasePlan for 4.9 billion euros ($5.5 billion) in cash and shares to create Europe’s largest car leasing group, according to the Financial Times.

The 2 billion euro (almost $2.3 billion) cash portion of the deal will comes through the combination of a 1.3 billion euro (almost $1.5 billion) ALD rights issue and 700 million euros ($790 million) in excess capital. The deal could also save SocGen about 380 million euros ($429 million) per year by 2025.

Related: Societe Generale Taps Temenos To Modernize Corporate Banking

In June, Société Générale called on banking software firm Temenos to update its account management and payment infrastructures for global transaction banking in Asia and Europe. The bank now uses the Temenos cloud-native banking system, taking the place of currency legacy infrastructures in 13 countries across Asia and Europe as part of a “strategic transformation” roadmap.

Temenos’ structure is “open-API based,” and it allows information to move through “the functional business lines of a corporate bank from payments to cash management,” according to the announcement.

Temenos and Canadian Western Bank (CWB) have created a global Explainable AI-driven (XAI) product called Temenos Virtual COO, which was built on the Temenos Infinity digital banking infrastructure, while it uses Temenos Analytics as well as its API-first “cloud-native technology.”

Also read: Société Generale, Kyriba Team On Cloud Treasury Offering

Meanwhile, Société Generale and Software-as-a-Service (SaaS) treasury and finance provider Kyriba partnered on a “new treasury management solution” for Société Generale clients. The platform includes “real-time monitoring of treasury positions and provisional management of liquidity flows,” automated payments; banking delegation and mandate management; enhanced anti-fraud measures; and the ability to connect with multiple banks.

Société General has more than 133,000 employees in 61 countries, according to the June 2021 announcement. San Diego, Calif.-based Kyriba has more than 2,000 clients around the world, with offices in Dubai, Frankfurt, London, Minsk, Paris, Shanghai, Singapore, Tokyo and Warsaw.