Nedbank bulks up its fleet management business with new takeover deal

Nedbank is buying JSE-listed industrial group enX's fleet-management business Eqstra in a deal that valued at R2.5 billion. It will be combined with the bank's own fleet management business as it looks to build scale.

The transaction is still subject to regulatory approval and a final calculation of the acquisition price must still be confirmed, but enX said that if the transaction had closed at the end of August, the gross proceeds received before taxes, debt and transaction costs would have been just over R1 billion. Nedbank will take on Eqstra's debt of about R1.4 billion.

Eqstra provides a full spectrum of commercial and passenger vehicle leasing services, including fleet management, outsourcing solutions, maintenance, warranty management, remarketing and vehicle tracking solutions. enX, valued at R1.6 billion on the JSE, also has petrochemical and industrial equipment interests. Its fleet management business accounted for just under 30% of group revenue as of 2023 and employed just under 300 staff.