VW is in talks to purchase a Europcar car rental service

VW is in talks to purchase a Europcar car rental service

June 25, 2020 0 By autotimesnews

The French company Europcar, which provides rental cars for everyone, can soon be bought by a German automaker for 390 million euros

Volkswagen is reportedly in talks to buy the French car rental giant Europcar. This step will allow the German automaker to use its fleet more efficiently, experts familiar with this issue say.

Europcar during this period was experiencing financial difficulties due to the coronavirus pandemic (COVID-19), which greatly complicated the travel of people around the world and also reduced the demand for rental cars.

It is also worth noting that VW previously owned Europcar, but decided to sell it to investment firm Eurazeo back in 2006.

According to one of the sources directly familiar with this issue, the German automaker has already turned to the management of Europcar to express interest in the purchase and conduct a comprehensive check of the current state of the company. Negotiations, however, are preliminary, and we cannot know about their results until the deal really takes place.

As of the end of March this year, Europcar has a market capitalization of 390 million euros and a net debt of more than 1 billion euros. The new deal could allow VW to buy back Europcar at a significant discount compared to 3.32 billion euros, for which he sold the company about 14 years ago.

Last month, Europcar said it had received a “package” of financing of € 307 million, including a loan of € 220 million guaranteed by the French state at 90% – only to stay afloat during the crisis with coronavirus.