Published on Wednesday, December 6, 2017

Europcar given green light to snap up low-cost rival

Europcar has won approval from the EU Commission to buy its budget European rival, Goldcar.

The acquisition is expected to be completed before the end of the year. The deal includes refinancing Goldcar's fleet debt.

In a statement, Europcar said: "This acquisition is a significant strategic step for the Europcar Group as it will increase its exposure to three major growth engines - the Mediterranean region, the leisure segment and the low-cost segment - and enable Europcar to become a major player in the fast growing European low cost segment."

Goldcar is Europe's largest low-cost car hire firm and Europcar said the deal was expected to generate almost €30 million of cost synergies a year by 2020.

The bulk of these synergies will come from savings relating to Goldcar's fleet purchasing and fleet financing. The remainder will be generated by cost efficiencies coming from the benefits of combining Goldcar's streamlined operating model with Europcar's large European footprint. 

Europcar Group CEO Caroline Parot said: "We are pleased with the decision from the EU Commission to approve the acquisition of 100% of Goldcar.

"As soon as January 2018, Goldcar will be at the core of the Europcar Group's low cost deployment strategy and will be a strong driver of both revenue and margin growth for the Group as a whole.

"In line with our 2020 ambition, we have over the last twelve months significantly strengthened our position in three segments - low cost, vans and trucks and car rental - thanks to the strategic acquisitions of Buchbinder and Goldcar and the onboarding of new countries."

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