The acquisition through Absa's Vehicle and Asset Finance division will add about R425m to the division?s lease contract book and more than double the size of its fleet.
According to Peter Mageza, Absa Group executive director, the deal strengthens Absa's position in the market and provides a sound platform for Absa Vehicle and Asset Finance to deliver a sustained growth in the vehicle leasing and fleet management market.
"The strategic intent motivating the deal was to attain profitable growth in a mature industry while establishing Absa as a major player.
"LeasePlan SA is a leading company in its field and brings extensive intellectual capital and a solid client base into the Absa fold which will help us attain these goals," said Mageza.
Absa announced on February 2 2004 that its Vehicle and Asset Finance division had acquired the entire issued share capital of LeasePlan SA to create the largest bank-owned fleet management company in the country.