Fleet News

Green Flag up for sale in Cendant clear-out

THE UK's breakdown and recovery market is set for further upheaval following Cendant Corporation's decision to put Green Flag up for sale. Cendant is considering the sale as the third phase of a major re-organisation that has already seen it dispose of its Cendant and PHH fleet and accident management businesses to Avis Rent A Car.

A statement said Cendant had engaged merchant bank Merrill Lynch to consider 'strategic alternatives' for Green Flag, including its possible sale. 'When the company purchased Green Flag in 1998, it saw certain synergies with its UK fleet operations. Due to the disposition of these operations, Green Flag is no longer a strategic asset.'

Cendant, who acquired Green Flag when it bought National Parking Corporation for £801million, will retain National Car Parks but may continue to sell part of NCP's property portfolio. Earlier this year, the Monopolies and Mergers Commission effectively blocked Cendant's £450million bid for the RAC by saying the deal could only proceed if it sold Green Flag.

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