Fleet News

Speculation ends as Cendant offers £450 million for RAC

THE world's largest consumer services group Cendant Corporation - which owns PHH Vehicle Management Services and Green Flag - looks set to buy RAC Motoring Services for £450 million. Following a month of speculation concerning the future of the 101-year-old RAC it was announced on Friday that the boards of the RAC and American-brand group Cendant had 'entered into an agreement to conduct exclusive discussions' with the deal likely to be finalised by July or August.

The deal will need approval from the RAC's 12,000-plus full members - who will each receive between £33,000 and £35,000 if it goes ahead - and the board of the motoring organisation is expected to hold a general meeting in June. In announcing the proposed deal - which would also see Cendant acquiring RAC Motoring Services' subsidiary BSM and BSM Fleet Training - the RAC stressed it was business as usual as far as the 5.6 million members including fleet customers were concerned.

The deal will give 'excellent opportunities', according to RAC Motoring Services and Cendent, for developing the RAC's business with Cendant's existing UK operations which include PHH Vehicle Management Services, Green Flag, Harpur UK's Dialcard and Overdrive fuel cards and NCP - all of which have been acquired in the past year.

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