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BNP Paribas, Avis ink pact
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April 18, 2000: 6:07 a.m. ET
French bank, US auto renter link corporate vehicle leasing activities
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LONDON (CNNfn) - BNP Paribas, France's biggest traded bank, agreed Tuesday to invest $800 million in a new joint venture with car renter Avis Group Holdings, creating a European leader of auto fleet management and leasing services for corporate customers.
The agreement gives BNP Paribas an 80 percent stake in the venture, which will unite the bank's Arval auto financing division with Avis' PHH Vehicle Management Services unit.
The companies will look to merge PHH Europe with Arval's European business within a year. The partnership, expected to close this quarter, comes a week after BNP Paribas beefed up Arval by buying the 50 percent of Europcar leasing unit Europcar France it didn't already own. 
Avis, a unit of U.S. real estate, hospitality and rental company Cendant (CD: Research, Estimates), will license PHH North America's services to the joint venture. BNP Paribas will have eight seats on the board of the venture company and Avis two.
"This alliance between two leaders in their respective continents is a tremendous opportunity for BNP Paribas to further develop its business-to-business, fee-based specialized financial services operations," BNP Chairman and Chief Executive Officer Michel Pébereau said in a statement.
The venture, which builds on a five-year-old cross-selling agreement between the companies, will be known as PHH/Arval in North America and Arval/PHH in Europe. Arval/PHH will manage 545,000 vehicles in Europe, making it the continent's leader, the companies said.
In Paris trading Tuesday morning, shares of BNP Paribas (PBNP) slipped 1.1 percent to  87.05. Cendant shares fell 1/16 to 15-13/16 on the New York Stock Exchange Monday. 
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