Volkswagen in talks to acquire Eurazeo's Europcar stake - report

According to a report by Reuters, Europcar has been struggling as a result of the Covid-19 pandemic. As of March, the company reportedly had a market cap of €390m and debt of more than €1bn. 

However, the report also cited sources as saying that the deal is not guaranteed. 

Europcar’s largest owner is French PE firm Eurazeo, which owns a 29.9% stake in the company. 

Eurazeo has been in talks with parties to sell its stake since before Christmas 2019, according to a source close to the situation. 

The source added that Volkswagen is cash-rich right now and that the company needs a channel for its car production. The source also cited the historical relationship between the two firms, with  Volkswagen having been the previous owner of Europcar. 

The Reuters report said that PE firms including Apollo Global Management had expressed interest in the car rental company, which was founded in 1949 and operates in over 130 countries.

Acuris publication Dealreporter noted in January 2020 that seeking out a strategic buyer or financial sponsor for its remaining 29.9% stake looked like Eurazeo’s most viable exit route.

The French GP wholly acquired Europcar from Volkswagen for €3.08bn in 2006.

The PE firm subsequently listed Europcar on Euronext Paris in an IPO that valued the business around €2bn, while Eurazeo retained a 42% stake. 

Europcar's 2018 financial report stated Morgan Stanley and Italy-based Kairos Investment as shareholders, with a 5.08% and 3.1% stake, respectively. Activist investor CIAM acquired a 5% stake in the company in November 2019. 

Eurazeo declined to comment. 

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