CMA to investigate merger of LeasePlan and ALD Automotive

The UK Competition and Markets Authority (CMA) has launched an investigation into the acquisition of LeasePlan by ALD Automotive.

Opening the inquiry in September 2022, the CMA stated: the Competition and Markets Authority is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

In January 2022, ALD announced that they had signed a Memorandum of Understanding to acquire 100% of LeasePlan from a consortium led by TDR Capital. ALD Automotive later signed a framework agreement in April 2022, with the merger expected to be complete by the end of the year.

The merger is expected to create one of the largest leasing and mobility companies in the world, with NewALD strongly positioned to lead the digital transformation of the industry and capture mobility sector growth, generating significant value thanks to scale effects and synergies.

After making initial phase 1 enquiries, the deadline for the CMA to reach a decision as to whether they refer the case for phase 2 investigation is November 15th.