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Mercedes-Benz has signed an agreement to sell its European leasing subsidiary Athlon to BNP Paribas, as part of efforts to unlock liquidity and streamline operations. The transaction, expected to close in the second half of the year subject to regulatory approvals, could generate up to EUR 1 billion in liquidity. Athlon operates across 20 countries and is a significant player in the vehicle leasing market. The deal reflects a broader strategy by Mercedes-Benz to optimise capital allocation while allowing BNP Paribas to strengthen its presence in the European leasing segment.
Mercedes-Benz has entered into an agreement to sell its vehicle leasing subsidiary Athlon to BNP Paribas, marking a strategic move to release capital and sharpen its operational focus. Advertisement
The agreement, signed earlier this month, follows the company’s decision taken towards the end of the previous year to divest the leasing business. The transaction is expected to be completed in the second half of the year, subject to regulatory approvals across relevant jurisdictions.
Athlon is one of Europe’s established leasing providers, with operations spanning 20 countries and a broad customer base across corporate and fleet segments. The business was acquired by Mercedes-Benz, then operating as Daimler AG, from Rabobank in 2016 for USD 1.1 billion.
Company officials indicated that the divestment is expected to generate significant liquidity, with estimates suggesting proceeds could contribute up to EUR 1 billion. This is expected to support cash generation in the current financial year and strengthen the company’s balance sheet.
The transaction aligns with Mercedes-Benz’s broader capital allocation strategy, which includes focusing on core automotive operations and improving financial flexibility. The company has been evaluating non-core assets to optimise returns and streamline its business structure.
For BNP Paribas, the acquisition is expected to expand its presence in the European vehicle leasing market. The bank is already active in this segment through its subsidiary Arval, and the addition of Athlon is likely to strengthen its scale and market position.
The deal reflects ongoing consolidation trends within the European leasing and mobility services sector, where financial institutions and automotive companies are reassessing their roles amid changing market dynamics, including shifts towards electrification and evolving ownership models.
While financial details of the transaction have not been disclosed, the agreement is expected to be subject to standard regulatory scrutiny given the scale and cross-border nature of Athlon’s operations.
The divestment highlights a broader trend among automotive manufacturers to reassess ancillary business units and focus on capital efficiency, particularly in an environment of increasing investment requirements linked to technology, electrification, and mobility transformation.
Source - Reuters
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