23 Sep 20

Localiza, Unidas announce merger in Brazil

Localiza and Unidas, Brazil’s two largest automobile leasing and rent-a-car companies, announced an agreement late Tuesday (22 Sep) to merge their businesses.

While Localiza shareholders will hold 76.9% of the new company, Unidas shareholders will hold 23.1%. The transaction is being managed by Bank of America and Banco Itaú, respectively.

At the time of the announcement, Localiza was valued at 39.2bn reais (US$7.06bn) and Unidas some 10.8bn reais, local media reported.

Following the news, the price of Localiza shares at midday (23 Sep) was up by 13% to nearly 60 reais and Unidas up 19% to just over 25 reais.

The transaction is awaiting final approval from Brazil’s antitrust agency Cade. The newly formed company is set to have a total fleet of approximately 470,000 vehicles.

Authored by: Daniel Bland