GERMANY: Volkswagen and Abu Dhabi fail to agree on using VW shares to buy 50% of LeasePlan
Volkswagen AG's board and the government of the Emirate of Abu Dhabi have mutually agreed to end their talks about the use of Volkswagen shares in the acquisition of global multi-brand fleet management company LeasePlan, the two sides said in a statement.
"No agreement was possible regarding the purchase price of the share package, amounting to 9.8% of the capital, under conditions prevailing in the current capital market. Both sides regret this, but see very promising perspectives for further intensive and sustained cooperation for all concerned," the statement said.
The purchase of a 50% share in LeasePlan Corporation N.V. of Almere-Stad, Netherlands, will now be financed through current operations, the statement added.
The corporate and legal structure of LeasePlan remains unchanged with Volkswagen Financial Services Group having a 50 percent share of the joint venture. The private Saudi Olayan Group, as well as the Mubadala Development Company owned by the Emirate of Abu Dhabi will each hold 25%.