Mubadala Development acquires 25 per cent stake in LeasePlan Corporation The Abu Dhabi government-owned Mubadala Development Company has joined hands with Germany’s Volkswagen Group and Saudi Arabia’s Olayan Group to buy the Dutch fleet management giant LeasePlan Corporation from ABN Amro Bank for €2 billion.
Under the terms of the deal, Mubadala and Olayan Group will each own a 25 percent stake in LeasePlan and Volkswagen will own 50 percent. This is one of Mubadala’s biggest strategic investments in a large-scale international venture. The company is a majority shareholder with a 51 percent stake in Abu Dhabi-based Dolphin Energy – the developer of the first integrated natural gas network in the GCC ? along with France’s Total and the US’ Occidental Petroleum.
“The acquisition of a stake in LeasePlan is in line with the strategic interests of the government of Abu Dhabi,” said His Highness Lt General Staff Pilot Sheikh Mohammed Bin Zayed Al Nahyan, Deputy Crown Prince of Abu Dhabi, Chief-of-Staff of the UAE Armed Forces and Chairman of Mubadala. “This will provide us access to global and regional markets and open up opportunities for further joint ventures with international companies.”
LeasePlan is the leading multi-brand fleet management services provider in Europe and one of the leading players worldwide. It has total assets of Euro 10.8 billion and 1.2 million vehicles under management in 26 countries. The company made a net profit of €193 million in 2003 and has over 7,000 employees. “We are pleased to have Volkswagen and the Olayan Group as Abu Dhabi’s partners in this deal.
Mubadala’s mission is to invest in commercially sustainable ventures and acquire the best technology and expertise for the UAE through partnerships with global industry leaders and contribute to the ongoing economic development under the directives of President His Highness Sheikh Zayed Bin Sultan Al Nahyan and Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, His Highness Sheikh Khalifa Bin Zayed Al Nahyan,” Sheikh Mohammed said.
The LeasePlan acquisition follows the signing of a memorandum of understanding (MoU) between Mubadala and Volkswagen in October 2003, which laid the foundation of a mutually beneficial business relationship between the two parties and called for exploring opportunities for setting up joint ventures in the UAE, the GCC and around the world. Mubadala is a wholly owned investment vehicle of the Abu Dhabi government. It was set up in October 2002 through Emiri decree No. 12 of 2002, issued by Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces His Highness Sheikh Khalifa Bin Zayed Al Nahyan.
Mubadala has the mandate to establish new companies, acquire stakes in existing companies in the UAE or abroad and focus on generating sustainable economic benefits for the emirate of Abu Dhabi through partnerships with local, regional and international investors. The company intends to invest in a wide range of sectors including energy, utilities, real estate, basic industries and services to diversify and further develop the economy of Abu Dhabi. Mubadala has a six-member board of directors chaired by His Highness Sheikh Mohammed Bin Zayed. Other members of the board are Mohamed Ahmed Al Bowardi, Nasser Ahmed Al Suwaidi, Ahmed Ali Al Sayegh, Hamad Al Hurr Al Suwaidi, and Mohamed Saif Al Mazrouei. Khaldoon Khalifa Al Mubarak is Mubadala’s Chief Operating Officer (COO). For further information please contact: Abdulla Khouri Mubadala Development Company Tel: +971 2 6160099 Fax: +971 2 6160098 E-mail: email@example.com