German car manufacturer Volkswagen is in talks to acquire French car rental company Europcar Mobility Group.
According to Reuters, the deal will allow the company to make better use of its fleet.
The acquisition will be at a time when Europcar is struggling to cope with the aftermath of the Covid-19 pandemic, which strains travel activity around the world and weakens the demand for car rental. Volkswagen sold Eurocar to the Eurasio investment firm in 2006.
A source said that Volkswagen had contacted Europcar to express its interest in the acquisition and to take measures to deny the foolishness. The sources added that the talks are preliminary and that it is not possible to confirm the conclusion of a deal due to the financial damage that caused Europcar as a result of the outbreak of the Coruna virus.
The sources added that Europcar, with a market capital of 390 million euros (441 million dollars) and net debt of more than one billion euros until the end of March, also attracted interest from Direct investment companies, including Apollo Global Management.
Volkswagen, Apollo and Eurasio, which currently owns nearly 30 percent of Europcar, declined to comment.
