LeasePlan South Africa will be managed in conjunction with the Vehicle and Asset Finance division of Absa.
This will allow Absa to merge its financial and fleet services capabilities with those of LeasePlan to constitute the largest bank-owned fleet management company in the country.
Peter Mageza, newly appointed executive director of the Absa Group and managing executive of the Vehicle and Asset Finance division says: "Our strategic intent is to strengthen our position in the South African vehicle leasing and fleet management market."
He says LeasePlan is a leading local fleet management and vehicle leasing company and brings with it extensive intellectual capital and a blue chip customer base.
"It establishes a sound platform for Absa Vehicle and Asset Finance to deliver sustained growth in this industry," says Mageza.
"We are delighted to bring LeasePlan into the Absa fold. LeasePlan SA has vast expertise and has established itself as one of the best fleet management companies in the country," he says.
"As we go forward we will continue to leverage the established competencies of LeasePlan South Africa, as well as those that are already established in Absa".
Mageza added that Absa will continue to have a relationship with LeasePlan Corporation NV through an alliance agreement.
John Broadway, MD of LeasePlan Fleet Management South Africa comments: "We have enjoyed being part of LeasePlan Corporation Group for the past six years, during which time we have laid a solid foundation for the future of the company.
"In view of Absa's financial strength, large customer base and strong brand awareness, we are confident that they will support the further growth of the company.
"Absa has been recognised as the best employer in South Africa for the past two years, and this gives us even more confidence for a brighter future together."
Hugo Levecke, chairman of the managing board and CEO of LeasePlan Corporation NV, says the company is delighted to have found an excellent strategic shareholder for the company.
The transaction is subject to the approval of the Competition Authorities and other relevant Regulatory Bodies.