Fleet News

Banking giant buys Associates Fleet Services

ASSOCIATES Fleet Services has become the latest leasing firm to change hands after its parent company was bought by international banking giant Citigroup. The £21 billion deal covering Associates First Capital Corporation businesses worldwide comes hot on the heels of the sale of ACL autolease, Jessups Vehicle Contracts and Highway Vehicle Management in the UK.

Associates First Capital Corporation is the largest publicly traded finance company in the US, with managed assets of more than £60

billion and 2,750 offices in the US and 13 other countries, including the UK.

Citigroup is a global financial services company with assets of more than £791 billion, with more than 100 million customers in 100 countries. Although AFS in the UK amounts to a tiny fraction of the deal, it offers Citigroup a major slice of the full service leasing market.

Associates First Capital Corporation is one of the largest fleet leasing companies in the world with more than 200,000 vehicles on full service leases in the USA and 17,000 in Canada.

Although it is too early for the new owners to say what its plans will be in the market, there is speculation this could spark further acquisitions in the UK or Europe. The deal is still subject to approval by Associates shareholders and domestic and foreign antitrust, banking and insurance regulators.

Colin Tourick, managing director of Associates Fleet Services, was unavailable for comment.

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