Fleet News

Sale of RAC to be finalised in September?

THE £450 million sale of RAC Motoring Services to the American-owned Cendant Corporation looks set to be completed in September. RAC members have voted overwhelmingly - 97.7% on a turnout of 84% - to approve the final stage of the arrangements which will lead to the sale of RAC Motoring Services to Cendant Corporation. A total of 10,060 members voted for the share disposal and 32 against.

The result gives the seal of approval for the sale of RAC Holding's shares to be sold to Cendant, which in the last 18 months has bought PHH Vehicle Management, Fleet Management Services, Overdrive and Dialcard fuel cards and Green Flag in the UK as well as National Car Parks. RAC Holdings, the company which indirectly owns RAC Motoring Services, must now wait for the go-ahead from the Office of Fair Trading for the deal to go through.

If there is no referral to the Monopolies and Mergers Commission then RAC sources expect the deal to be finalised next month. Should the proposed deal be referred it could delay any sale for at least three months. Final approval follows a complex series of legal arrangements made following the announcement of the proposed £450 million deal on May 1.

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