An acquisition announcement in the fleet space literally on a global scale came to light on Thursday.

ALD Automotive said it signed of a memorandum of understanding to acquire 100% of LeasePlan from a consortium led by TDR Capital.

According to a news release, the proposed acquisition of LeasePlan is for a total consideration of 4.9 billion Euros and would be made through a combination of cash and shares.

The companies said they expect the deal to be completed by the end of the year.

LeasePlan is one of the leading fleet management and mobility companies in the world by fleet size with 1.8 million vehicles in its portfolio, prompting leadership to say that “with a global and extensive offering,” LeasePlan is “the perfect fit for ALD to shape the industry’s transformation.”

The proposed combination of ALD and LeasePlan into NewALD is expected to be “highly synergetic” and create an opportunity to cross-leverage the two companies’ complementary capabilities.

As a leading global player in mobility worldwide, NewALD explained that it would be able to benefit from a fast-growing market driven by strong underlying trends, including the:

— Shift from ownership to usership on all fronts: B2B, B2C and even B2E4

— Data-driven digital transformation of the mobility industry

— Transition toward zero-emission and sustainable mobility

Executives added that this “transformative” deal would position NewALD for long term fleet growth of at least 6% post integration. NewALD said it would target an improvement in cost to income ratio to 45% by 2025.

“Today marks the beginning of a new chapter in our history as a first step towards creating NewALD,” said ALD chief executive officer Tim Albertsen, who also will lead the combined company. “In the context of today’s transformation of the automotive and mobility sectors, which is proceeding at an unprecedented pace, this proposed transaction is instrumental in the creation of a leading global player in mobility.

“By combining the multiple strengths of ALD and LeasePlan, gaining size, joining forces in digital and creating a leading provider of sustainable mobility solutions, we would transform our industry and be best positioned to deliver even better solutions and value propositions to our enlarged client base,” Albertsen continued. “This transaction would create multiple opportunities to the joint management teams and talents of both companies, across geographies, underpin our focus on sustainability with a clear path to zero emissions mobility and not least deliver strong shareholder returns over the cycles.

“We are all very excited about the prospect of being part of this new venture,” he added.

The proposed transaction has received the support of LeasePlan’s board of directors, as well as its supervisory board

“The combined business would be instrumental in moving the automotive industry from ownership to subscription models and zero-emission mobility,” LeasePlan chief executive officer Tex Gunning. “By joining forces with ALD, we combine the best talents in the industry with the investment power needed to meet the next generation mobility needs of our customers.

“From day one, NewALD would be operating one of the largest fleets of electric vehicles and will continue to set the standard for ESG in the mobility industry. I am very proud of all LeasePlanners for bringing our business to where it is today. We are looking forward to working with the excellent team at ALD and taking our combined business into the exciting future of mobility,” Gunning went on to say.