Volkswagen Group is reportedly leading a consortium in talks to buy French car rental firm Europcar.

Reuters reported that talks are progressing and the outline of a deal could emerge this week, with Europcar valued at around EUR2.5bn.

Europcar has issued a statement confirming that it is in advanced discussions with a consortium composed of Volkswagen Group, Attestor Limited and Pon Holdings B.V. for a transaction on the company’s share capital in the form of a possible takeover offer at price of around 50 euro cents per share.

The statement added that “there is no certainty as to the outcome of these discussions and the company will keep the market informed promptly.”

The news follows previous reports that VW is interested in taking control of Europcar, but has failed to provide an offer acceptable to the car rental firm’s hedge fund owners.

VW used to own Europcar, although it divested in 2006. However, analysts say it could now see value in using Europcar’s network of rental stations for the rollout of mobility services. Europcar’s daily hire fleet would also provide a sizeable captive market.

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With the car rental market reeling under the impact of pandemic-related transport restrictions, now could be a good time to pick up Europcar at a low price.

See also: Value and future prospects drive Volkswagen interest in Europcar