Sumitomo Makes $582 Million Bid for FleetPartners
Synopsis
Sumitomo has made an A$813.1 million bid for FleetPartners, joining three other companies competing to take over the Australian vehicle leasing business.
Key Highlights
- FleetPartners launches $813.1 million takeover bid from Sumitomo.
- The bid is the fourth takeover offer for the Australian vehicle leasing group.
- Sumitomo bid under SG Fleet-acquired for A$3.85 a share
- FleetPartners has provided Sumitomo with limited data in regard to its financials and business information.
Sumitomo Makes FleetPartners Offer
FleetPartners gets A$813.1m ($582.3 million) bid from Sumitomo Max Focus.
It is a four-way competition to take over the target. FleetPartners has also recently received approaches to purchase it from Japan’s ORIX and PEP-backed bidders SG Fleet and Element Fleet of Canada which are both tabling offers for the Australian lessor. The Sumitomo group consists of trading companies Sumitomo and Sumitomo Mitsui Auto Service.
Four Companies Compete for FleetPartners
FleetPartners shares have been pitched at A$3.85 in cash from Sumitomo. This is 34% above the level of the company’s share price on July 31, before the contest to take over. The bid beat the A$3.80 bids from ORIX and Element Fleet. Nonetheless, it is still short of the SG Fleet’s A$4.00 bid.
FleetPartners shares were down 0.2% at A$4.23 in early trade. Since SG Fleet first kicked off its takeover play on August 3, shares have climbed almost 50% in just over three weeks.
Fleet Leasing Business Attracts Buyers
FleetPartners has generated great interest due to the growth of its novated leasing business. In FY2025, this segment accounted for almost 20% of its operating profits.
A novated lease is essentially financing a car through an employer, and could save an employee money on income tax. Tax breaks for qualified electric vehicles have helped as well. The takeover interest further demonstrates the ongoing appetite for Australian companies from overseas and private equity buyers.
Sumitomo Gets Limited Access
Part of FleetPartners’ review has included limited exposure from the Sumitomo group to its business and financial information. The company is still hearing bids from all four potential purchasers.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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