Volkswagen in advanced talks over $3 billion deal for Europcar

A consortium led by Volkswagen is in advanced talks to purchase Europcar in a deal that would value the French car rental company’s equity at about 2.5 billion euros ($3 billion).

Europcar confirmed on Tuesday it was going through a potential offer at around 0.50 euros per share.

A tie-up could be announced by Wednesday if talks about an agreement in principle are successful, according to the sources, Reuters reported.

They said the price could still modify or include sweetener clauses if acceptance levels reach a certain threshold. One of the sources said the companies’ boards were set to meet separately on Wednesday.

Volkswagen has not commented, as did Anchorage, the lead fund that took control of Europcar last year along with other investment companies.

The European leader in car rentals, which was hit hard by the coronavirus pandemic as international travel ground to a halt, will release first-half results on Wednesday following the market close.