A consortium led by Japan’s Sumitomo Corp has proposed an A$813.1 million ($582 million) cash bid for FleetPartners, Australia’s second-largest vehicle leasing company, intensifying a takeover contest that has unfolded over the past month.
The offer values FleetPartners at A$3.85 per share, a 34% premium to the company’s closing price on July 31, before the bidding activity began. This marks the fourth formal proposal for FleetPartners since late July, with the latest bid arriving just days after SG Fleet raised its offer to A$4.00 per share, maintaining its position as the highest bidder.
Sumitomo’s consortium, which includes Sumitomo Mitsui Auto Service, joins Japan’s ORIX and Canada’s Element Fleet in competing for FleetPartners. Both ORIX and Element previously tabled offers of A$3.80 per share, while SG Fleet—backed by Pacific Equity Partners—has emerged as the leading contender with its revised A$4.00 per share proposal, submitted two weeks prior after its initial bid was rejected.
The takeover interest centers on FleetPartners’ novated leasing business, which contributed nearly 20% of the company’s operating earnings in fiscal 2025. Novated leasing, a structure allowing employees to finance vehicles through their employer to reduce taxable income, has gained traction in Australia amid government incentives for electric vehicles. FleetPartners’ earnings growth in this segment has drawn multiple suitors seeking to capitalize on the expanding market.
The bidding war remains unresolved, with FleetPartners’ board yet to accept any offer. The company’s shareholders are expected to evaluate the latest proposal alongside existing bids, weighing valuation, strategic fit, and regulatory considerations in the coming weeks.
