Localiza, Unidas get green light in Brazil to become one
By Daniel Bland- June 29, 2022
Twitter?@DanielBlandBiz?GlobalFleet.com?-?FleetLatAm.com
?Localiza and Unidas,?Brazil’s?largest and second largest vehicle leasing and car rental agencies respectively, will officially become a single company on Friday (1 July).
This is according to local watchdog Cade which last week approved a deal by Localiza and Unidas to?sell 49,000 vehicles?to Canadian asset management company Brookfield for 3.57 billion reais (US$677?million).
Equivalent to an average of US$13,939 per vehicle, the shedding of these assets was a condition to approve the merger of Localiza and Unidas?announced in December. Brookfield is the owner of Brazilian vehicle leasing and rental agency Ouro Verde which now has a fleet of approximately 87,000 vehicles.
"Localiza is a?very cost-conscious company that knows the Brazilian market well, and it will be aggressive with trying to get discounts from auto manufacturers. Although the new Localiza led group will take a firm lead in the market, we?can certainly expect some arm wrestling among the top players, local and regional experts told Fleet Latam during the evaluation phase of Cade.?
"As?local player Movida will be holding the?No. 2 spot, it will remain?well positioned. Overall, remember that healthy competition is needed to maintain favorable pricing in the market," they added. See more here...