VW close 'to buying Europcar for €2.5bn'   

A consortium led by German carmaker Volkswagen increased its offer for Europcar to around €2.5bn. 

Volkswagen is moving closer to a deal to buy Europcar after gaining support from the car rental firm’s hedge fund backers with a sweetened offer, according to sources. 

A consortium led by the German carmaker increased its offer for Europcar to around €2.5bn. 

Europcar shares rose as much as 5% in Paris trade. 

While an agreement could be reached as early as this week, terms could still change and talks may also be delayed or fall apart, the sources said. 

Negotiations are particularly complex given there are about 10 different stakeholders involved, including more than half a dozen hedge fund investors in Europcar, they said.

VW’s previous offer with its partners Attestor and Pon Holdings was rejected about a month ago by Europcar as too low. 

VW is interested in gaining access to Europcar’s infrastructure and technology in a bet on the future of mobility services. 

While demand for rental cars has recovered as governments loosen virus-related restrictions, companies in the sector face long-term challenges from newer entrants offering ride-hailing and car-sharing.

If a deal is agreed, it would mark a reversal of sorts. 

VW took over Europcar in the late 1990s, then sold it to buyout firm Eurazeo in 2006 for €1.26bn.