Element Fleet Management has confirmed its interest in acquiring FleetPartners, adding a global fleet management heavyweight to what is quickly becoming one of the most closely watched transactions in the Australian and New Zealand fleet market.
The Toronto-based company has submitted a non-binding indicative proposal to acquire FleetPartners for $3.80 per share in cash, valuing the Australian-listed business at approximately $820 million.
Element has also offered to increase the price to $4.00 per share if FleetPartners agrees to a process deed, including three weeks of exclusivity, by 5pm Sydney time on 11 August 2026.
The Element proposal follows the $3.60 per share approach from SG Fleet, which the FleetPartners Board has unanimously rejected on the basis that it undervalued the company.
Element sees strategic value in FleetPartners
Element Chief Executive Officer Laura Dottori-Attanasio said FleetPartners offered an opportunity to expand the company’s position in a market it already knows well.
“FleetPartners represents a rare opportunity to add meaningful capability in a market we know exceptionally well,” Dottori-Attanasio said.
“We have operated in Australia and New Zealand for decades and have deep knowledge of the market, its clients, and operating environment. We believe a combination with FleetPartners has compelling strategic and financial logic and would strengthen our ability to serve clients and enhance our value proposition across the region.”
Element said the all-cash proposal was supported by its financial capacity and familiarity with the Australian and New Zealand fleet market.
Dottori-Attanasio said the company was approaching the potential acquisition with the same financial discipline it applies to other capital allocation decisions.
“Based on our current assessment, the Proposal is expected to be financially accretive and would preserve the strength and flexibility of Element’s balance sheet,” she said.
“We are pleased to have the opportunity to progress our Proposal and look forward to engaging constructively with FleetPartners through the next stage of the process.”
Who is Element Fleet Management?
Element describes itself as the world’s largest publicly traded pure-play automotive fleet manager.
The company manages more than 1.5 million vehicles globally and provides fleet management, technology, data and mobility services designed to help customers manage vehicles throughout their operating lifecycle.
According to Element, its scale and data helped identify more than $1.7 billion in cost-saving opportunities across customer fleets during the past year.
Element is also far from a newcomer to Australia and New Zealand.
Its wholly owned subsidiary, Custom Fleet, has operated in the region since 1978. That existing platform provides an important piece of context for the FleetPartners proposal.
Rather than representing a new entrant buying its way into the Australian market, a successful acquisition would combine two established fleet management operations.
Element said a combination with FleetPartners could improve client service, operating efficiency and investment in technology and mobility solutions.
Global scale meets a sizeable ANZ fleet business
FleetPartners itself brings considerable scale.
Its FY25 Annual Report showed more than 80,000 vehicles under management across Australia and New Zealand, with $2.3 billion in Assets Under Management or Financed and $778 million in New Business Writings.
The business operates across Australian commercial fleets, novated leasing and New Zealand commercial fleets, and provides services spanning vehicle acquisition, leasing, in-life fleet management and remarketing.
That portfolio would add meaningful volume to Element’s existing Australian and New Zealand operations and further consolidate a fleet management market where scale can influence funding, purchasing, technology investment and operating costs.
$3.80 now, potentially $4.00
Element’s $3.80 proposal represents a 34.3 per cent premium to FleetPartners’ undisturbed share price of $2.83 on 31 July 2026.
However, the more interesting number may be $4.00.
Element has offered that higher price if FleetPartners enters an acceptable process deed giving it three weeks of exclusivity to undertake due diligence and work towards a binding Scheme Implementation Deed.
For now, the process remains non-exclusive, meaning FleetPartners can continue evaluating other potential proposals.
Element has also stressed that its proposal remains indicative and non-binding. Any transaction would require due diligence, definitive agreements, shareholder approval, regulatory approvals and court approval.
With SG Fleet having made the opening move and Element now offering a higher price, FleetPartners has attracted exactly what shareholders would hope for when a company comes into play — competition.
Whether that develops into a full bidding contest remains to be seen, but Element’s arrival means this is no longer simply a discussion about SG Fleet acquiring FleetPartners.
It is becoming a contest over who sees the most value in one of Australia and New Zealand’s major fleet management platforms.
