PSA Group and BNP Paribas has announced a long-term strategic partnership in automotive finance around the joint acquisition of Opel and Vauxhall.
As part of the broader alliance announced today between PSA Group and GM’s Opel subsidiary, PSA and BNP Paribas have agreed to jointly acquire Opel / Vauxhall’s captive financing activities and have entered into a long-term strategic partnership around the Opel and Vauxhall brands.
Banque PSA Finance and BNP Paribas Personal Finance will each acquire 50% of the share capital of Opel / Vauxhall’s financing activities for a total of 0.9 Billion Euros, representing a multiple of 0.8x the combined pro-forma Book Value of 1.2 Billion Euris at year-end 2016. As per this partnership agreement, BNP Paribas will fully consolidate the entity.
Opel / Vauxhall’s financing operations cover 11 European countries, serving nearly 1,800 dealers and have outstanding earning assets of ca. 9.6 billion euris at year-end 2016, of which ca. 5.8 billion euros are financed by deposits or securitizations. Opel / Vauxhall’s financing operations offer a full range of automotive financing products, including consumer loans, leases, dealer financing and insurance products, with a constant focus on optimizing customer experience.
The operations will benefit from combined Banque PSA Finance’s and BNP Paribas Personal Finance’s expertise in automotive financing to better serve Opel and Vauxhall’s dealers and customers and support Opel and Vauxhall development. The transaction will be financed from existing resources of PSA and BNP Paribas and will have an impact of close to 10 bps on BNP Paribas Common Equity Tier 1 Ratio.
“This partnership represents a great opportunity to further grow BNP Paribas Personal Finance’s footprint on the attractive automotive financing business and is fully in line with our strategic goals for 2020. We have been a longstanding banking partner of PSA Group and are delighted with this value-enhancing partnership around Opel / Vauxhall,” stated Jean-Laurent Bonnafé, Chief Executive Officer of BNP Paribas.
“We will capitalize on our highly complementary capabilities to best serve Opel and Vauxhall’s dealers and customers and support the Opel and Vauxhall brands,” he added.
The transaction is expected to close in the fourth quarter of 2017 and is subject to customary anti-trust and other regulatory approvals.