Element Financial Corporation announced today that it has entered into a definitive agreement with GE to acquire GE Capital’s remaining North American fleet management operations in the US and Mexico, as well as GE Capital’s fleet management operations in Australia and New Zealand for an all-cash purchase price of C$8.6 billion.
Element had previously acquired the Canadian operations of GE Capital’s North American fleet management business in June of 2013.
In a related transaction, Element confirmed today that Paris-based Arval, a wholly-owned subsidiary of BNP Paribas and Element’s founding partner in the Element-Arval Global Alliance, has entered into a memorandum of understanding to acquire GE Capital’s European fleet operations.
On closing of the two transactions, the Element-Arval Global Alliance will be capable of managing customer fleets in more than 40 countries.
Subject to regulatory approvals, the US and Mexico transaction is expected to close in the third quarter of 2015, and the Australia and New Zealand transaction in the fourth quarter of 2015.