The European Commission (EC) has cleared Societe Generale’s ALD’s previously announced €4.9bn acquisition of Dutch automobile fleet management company LeasePlan, subject to conditions.

The EC said that with the modified commitments made by ALD, the transaction would no longer raise competition concerns.

During its investigation, the Commission raised concerns regarding the transaction that it would significantly reduce competition in the markets for operational leasing in Czechia, Finland, Ireland, Luxembourg, Norway and Portugal.

ALD has agreed to sell its operational leasing business in Ireland, Norway and Portugal, along with LeasePlan’s operations in Czechia, Finland and Luxembourg, with their assets, contracts and employees to address the Commission’s concerns.

The French financial services company will also provide transition services including time for rebranding, access to IT services and a used car sales platform, for a period of up to two years.

With a total fleet of 1.7 million vehicles, ALD is a major player in mobility solutions globally, offering full-service leasing and fleet management services across 43 countries.

LeasePlan is a global fleet management and mobility company with a total fleet of 1.8 million vehicles.

Following the closing of the transaction, Societe Generale is expected to remain the majority shareholder in the combined entity, called NewALD, with a 53% stake.

LeasePlan shareholders will hold a 30.75% stake in NewALD, which is expected to benefit from complementary capabilities and synergies. The transaction is expected to enable NewALD to develop new digital business models, as the deal provides improved capabilities to invest and develop new mobility products and ancillary services.