The transaction is expected to close in the fourth quarter of 2011, subject to regulatory approvals.

Details around how a joint operation may look and feel remain scarce. Van den Eijnden said: “In the growing European fleet management market, ING Car Lease is the perfect fit to complement the activities of Alphabet.”

The strengthening of the fleet management business is in line with BMW’s strategy to be the leading provider of premium products and services for individual mobility.

“Alphabet already assists our corporate customers to manage a sustainable fleet with a focus on low fuel consumption,” said Van den Eijnden. “Fleet management will also support the introduction of electric vehicles.”

Manufacturers will increasingly rely on their own leasing arms for the roll out of their electric vehicles, because of concerns about residual values.

Alphabet’s deal with ING will also give the German marque greater scope to subsidise the cost of electric vehicles.

The BVRLA welcomed news of the Alphabet-ING deal. Chief executive John Lewis told Fleet News: “Together with the entrance of a number of new funders for the leasing sector, this latest example of consolidation is a strong sign of the healthy and competitive nature of this market and the great opportunities it provides.

“On the one hand we have banks choosing to invest in the leasing and rental industry, and now we have the all-makes vehicle finance arm of BMW demonstrating its faith in the company car sector.”