Stellantis Signs With European Banks Over Financing Operations

   By Ed Frankl

Stellantis NV said Friday that it signed agreements with a number of European banks on reorganizing its financial service platform.

The binding agreements with the consumer-finance units of Credit Agricole SA, Banco Santander SA and BNP Paribas SA come after the car maker said it entered exclusive talks with the banks over its financing in December.

Stellantis said it would combine its companies Leasys and Free2move Lease into a new leasing company with Credit Agricole in which each would hold a 50% interest. The venture aims for a fleet around 1 million vehicles by 2026, the car maker said.

Credit Agricole Consumer Finance said it would also buy Stellantis out of the capital of FCA Bank and Leasys Rent it currently owns, with the ambition of making it a pan-European player in car financing, leasing and mobility, with a target of 10 billion euros ($11.07 billion) in outstanding portfolio by 2026, the bank said.

Stellantis also said it would reorganize financial activities through joint ventures set up with BNP Paribas Personal Finance and Santander Consumer Finance to manage financing activities.

Santander said it would become the car maker's financing partner for its brands in Belgium, France, Italy, the Netherlands, Poland, Portugal and Spain, with the bank aiming to increase the outstanding portfolio from Stellantis brands by 33% to EUR40 billion by 2026.

The transactions should be completed in the first half of 2023, once authorization from relevant antitrust authorities and market regulators has been obtained, Stellantis said.

Write to Ed Frankl at edward.frankl@dowjones.com

(END) Dow Jones Newswires

April 01, 2022 03:48 ET (07:48 GMT)

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