BNP Paribas is in advanced negotiations to acquire Athlon, the leasing subsidiary of Mercedes-Benz Group, reported Bloomberg, citing sources.
Sources also suggested the deal could be valued at around €1bn ($1.2bn), although they caution that discussions are ongoing and may not necessarily materialise into a deal.
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The potential acquisition is part of Mercedes-Benz’s review of its business operations.
Both BNP Paribas and Mercedes-Benz have refrained from commenting on the matter.
Earlier this year, the company had previously reached out to prospective buyers to assess interest in Athlon, a division it acquired in 2016 from Rabobank for around €1.1bn.
Through its subsidiary Arval, BNP Paribas is already engaged in the vehicle leasing market.
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By GlobalDataBloomberg News noted that Mercedes-Benz has faced challenges in maintaining profitability amid a cooling demand for its vehicles, particularly in China, and slower growth in Europe.
The report added that these issues have been compounded by tariffs introduced by the US on European auto imports, prompting the company to adjust its profit outlook.
Last month, Arval extended its partnership with CaixaBank Payments & Consumer, a subsidiary of Spain’s CaixaBank, until 2030.
This partnership is focused on the development of mobility solutions with an emphasis on sustainability and financial product innovation.
The extended tie-up plans to support the transition to cleaner transportation by financing 200,000 vehicles by 2030. The goal is to promote fleet renewal with safer, more eco-friendly vehicles, reducing CO₂ emissions and enhancing air quality in urban areas.
