FleetPartners, an Australian vehicle leasing firm, announced Wednesday it has received an A$813.1 million ($582.3 million) cash offer from a consortium led by Japan’s Sumitomo Corp. The proposal marks the fourth takeover bid for the company in less than a month as international investors compete for its leasing operations.
The surge in interest follows FleetPartners' reported growth in novated leasing, a system where employees finance vehicles through their employers to potentially lower income tax. This segment accounted for approximately 20% of the company's operating earnings in fiscal 2025, supported by tax incentives for electric vehicles.
The Sumitomo consortium, which includes Sumitomo Mitsui Auto Service, offered A$3.85 per share. This bid is higher than the A$3.80 per share offers previously submitted by Japan’s ORIX and Canada’s Element Fleet. However, it remains lower than a A$4.00 per share proposal from SG Fleet, a company backed by Pacific Equity Partners. FleetPartners shares rose nearly 50% in the three weeks following SG Fleet's initial approach on August 3.
The competition for the firm highlights a specific trend in the Australian financial services sector, where international firms and private equity groups are seeking to consolidate vehicle leasing providers. The focus on novated leasing means the eventual owner will manage the tax-advantaged vehicle contracts for thousands of Australian employees. These workers would notice changes in who administers their vehicle financing and potentially how their electric vehicle incentives are managed if the new owner alters service platforms or terms.
The board of FleetPartners has granted the Sumitomo consortium limited access to commercial and financial due diligence, a process where a potential buyer inspects a company's records before finalizing a deal. The company stated it is continuing to engage with the other three suitors simultaneously. While no final sale has been approved, the next steps include the completion of due diligence and potential revisions to the standing offers. No specific deadline for a final vote or sale agreement was reported.