Hyundai Capital to buy Sixt Leasing in Germany

An ad for Sixt / Courtesy of Sixt

By Park Jae-hyuk

Hyundai Capital confirmed ongoing negotiation with Sixt to acquire a controlling stake in the German mobility service provider's leasing business subsidiary.

The Hyundai Motor Group's auto finance arm said in its press release Thursday that Hyundai Capital Bank Europe ― a joint venture between Hyundai Capital and Santander Consumer Bank ― has taken steps to purchase shares in Sixt Leasing.

The press release came as Sixt had confirmed the negotiation in its regulatory filing a day earlier.

Market observers said Sixt and Hyundai Capital's confession showed a deal was imminent.

“The deal is expected to be finalized by late March at the latest,” an industry source said.

Sixt Leasing, one of major vehicle leasing companies in Europe, has offered tailored mobility services to individual and corporate customers based on its online platform, according to Hyundai Capital.

Hyundai Capital has yet to announce the specific amount of shares it will acquire.

But the proposed sales price is 18 euros ($19) per share in Sixt Leasing plus dividend of Sixt Leasing for the financial year 2019.

“A final decision on the acquisition has not been made so far, and a further announcement will be made if and when appropriate,” Hyundai Capital said in its press release.

The auto finance firm's latest attempt is presumably intended to expand its presence in the European market, taking advantage of popularity with vehicles made by Hyundai Motor and Kia Motors.

According to the European Automobile Manufacturers' Association, Hyundai Motor and Kia Motors collectively sold 10.6 million cars in Europe, accounting for 6.8 percent of the European vehicle market.

Hyundai Motor Group's share in the European car market was fourth-largest, following Volkswagen Group, Groupe PSA and Ford Motor Company.

In 2018, Hyundai Capital had 43 trillion won ($35 billion) in overseas assets.

It has financial services subsidiaries in Asia, Europe, North and South Americas.

Including its subsidiaries that offer financial consulting services only, the company has a total of 11 subsidiaries overseas.