Dutch financial services group ING is selling its car lease unit to BMW for EUR700m (US$1bn) in cash, which it will use to help pay back the Dutch state.
ING is in the throes of a huge restructuring as a condition of its EUR10bn state bailout following the 2008 financial crisis.
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Dutch media reports estimate that ING’s car lease unit’s operations could be worth around EUR4bn, comprising EUR3bn of debt and about EUR750m of extra capital.
The unit deploys 240,000 cars around Europe, has 1,200 employees and a balance sheet which totalled EUR3.5bn on December 31, 2010.
Jan Hommen, CEO of ING Group, said: “The sale of ING Car Lease illustrates our continued actions to streamline our business and simplify the company.”
The sale to BMW’s car lease unit Alphabet, will release EUR530m of capital. The deal is expected to close in the fourth quarter.
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