Deloittes secures £340m MG Rover deal
Deloitte & Touche Corporate Finance has notched up its fourth deal with MG Rover, the UK car company sold by BMW last year.
The Pounds 340m deal allows MG Rover, through a joint venture with HBOS, to take over the leases of 58,000 cars which were originally financed by the German manufacturer.
The Big Five firm created a joint venture – called MGR Capital – between the Phoenix Partnership, owner of MG Rover, and HBOS, who supplied the bulk of the finance.
Through MGR Capital, MG Rover has been reunited with a large proportion of its customer base and will be able to control resale prices for its products.
Customers who originally bought their cars using lease financing provided by BMW will now deal directly with MG Rover when the lease expire.
Ian Barton, corporate finance director at Deloittes, said the deal would benefit both the customer and the manufacturer. ‘There are lots of positives for both the business and the client base,’ he said.
Kevin Howe, chief executive at MG Rover, said: ‘It puts us in more control of the second hand value of MG and Rover cars. It also creates many new marketing opportunities for the future.’
Deloittes led the original buyout of Rover by Phoenix last year, when BMW sold the troubled group for a nominal Pounds 10.
The firm subsequently acted for MG Rover in two further deals, including the acquisition of US-Italian sportscar manufacturer Qvale.
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Deloittes completing Rover deal