Shanghai (Gasgoo)- On October 15, Crédit Agricole Personal Finance & Mobility ("CA Personal Finance & Mobility"), a subsidiary of France's Crédit Agricole Group, signed a capital increase agreement with GAC Group's two subsidiaries—GAC Business Co., Ltd. ("GAC Business") and GAC Finance Leasing Co., Ltd. ("GAC Leasing"), in Paris, France, according to a post on GAC Group's WeChat account.
Under the agreement, GAC Leasing intends to raise 2.13 billion yuan through this strategic investment, doubling its registered capital from 1.7 billion yuan to 3.4 billion yuan. CA Personal Finance & Mobility will hold a 50% stake in GAC Leasing, with GAC Group retaining the remaining 50% through GAC Business, transforming GAC Leasing from a wholly-owned subsidiary into a joint venture.
The capital increase was facilitated through a public listing on the Guangzhou Enterprises Mergers and Acquisitions Services, with the raised funds set to boost GAC Leasing's registered capital and operational funds. This move aims to expand the company's automotive financing business, strengthening its presence in the auto finance market. CA Personal Finance & Mobility, as the new strategic investor, will bring advanced financial management expertise to help GAC Leasing enhance its service quality and business sustainability.
Founded in 2004 as a fully-owned subsidiary of GAC Business, GAC Leasing became Guangdong's first domestic pilot company for financing leasing in 2013. It has since partnered with automakers such as GAC Trumpchi, GAC AION, GAC Honda, and GAC Toyota to offer a wide range of leasing services for personal, corporate, dealership test vehicles, and commercial vehicles. Operating in 319 cities across 30 provinces, GAC Leasing collaborates with over 2,200 dealerships and has supported more than 330,000 customers in fulfilling their car ownership dreams.
As the financing arm of GAC Group's financial division, GAC Leasing complements its automotive finance operations and supports vehicle sales. Since launching its financing leasing business, GAC Leasing has seen continuous growth, with a compound annual growth rate of over 34% in the past eight years by 2023.
Founded in 1951, CA Personal Finance & Mobility specializes in consumer credit services. It operates in over 22 countries and serves 17.2 million customers, boasting extensive experience in automotive finance and strong risk management capabilities.
The introduction of CA Personal Finance & Mobility as a strategic investor provides GAC Leasing with the capital needed to accelerate its market expansion and innovate in its product offerings. This partnership will enhance GAC Leasing's risk management systems through CA Personal Finance & Mobility's expertise, strengthen its digital transformation, and boost its overall competitiveness.
With the agreement now signed, GAC Leasing will move forward with regulatory approvals to finalize the deal. The company will continue to innovate in the automotive financing leasing sector, seeking to expand its presence and capture new market opportunities.
