Lease Team

dll sale rumours

25/01/2016

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It has been widely trailered in the Dutch and international press that Rabobank Group is in preliminary talks with banks, institutional investors and private-equity firms that may bid for its leasing unit, De Lage Landen International BV, in a sale that may fetch as much as €4.5 billion, according to various sources.

The transaction could be concluded in the second half of 2016, but apparently the banking group could be open to selling just parts of the leasing activities. Faced, as many giga-banks are, with having to cut assets estimated at €150 billion by 2020, driven by ever tougher European capital rules, selling off the leasing operations is often one of the first ports of call for over-large banking groups.

The objective observer may wonder why it has taken Rabobank Group so long to get to this stage, but then its structure as an agri-focused cooperative has only very recently been harmonised into a single entity with one banking license and a common annual report. Chairman Wiebe Draijer, a 50-year-old former McKinsey & Co. partner who took up his first banking job in 2014, is planning to cut 9,000 jobs at the bank over the next three years.

dll group reported net profit of €454 million euros in 2014, according to its annual report. The subsidiary makes up almost a quarter of the profit at Rabobank.



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