Grupo Supervielle to acquire Argentine car loan company Micro Lending
Argentina-based financial services group Grupo Supervielle has agreed to acquire car loan company Micro Lending (MILA) for $20 million to expand into the car loan segment.
According to Grupo Supervielle, Micro Lending is in the no.4 position in the new and used car loan market in Argentina, with specialization in car financing – especially for used cars. The Argentine car loan company is believed to have a market share of around 6% which goes to 10% when the used car market is considered on a stand-alone basis.
As per Patricio Supervielle – Grupo Supervielle’s Chairman and CEO, Grupo Supervielle acquisition of Micro Lending will enable the financial services group to complement its product offering while playing a significant role in the car loan market, which it considers as an important strategic segment.
The Argentine car loan company Micro Lending, which has 32 branches in Argentina to go along with more than 5,000 related agencies, is well placed to keep growing in the car loan market, especially in used car financing, said Patricio Supervielle.
Grupo Supervielle expects about two million used cars are anticipated to be sold this year. This is twice the expected annual new car sales, and only about 8% of used cars, having a financing loan attached are sold.
Commenting further on Grupo Supervielle acquisition of Micro Lending, Patricio Supervielle said: “The transaction will also provide MILA with access to funding to accelerate its growth strategy and leverage its current platform, while creating cross-selling opportunities across our Company and is expected to generate tax and operating synergies from the integration.”
Grupo Supervielle acquisition of Micro Lending is likely to be completed in the second quarter of this year should it satisfy certain preceding customary conditions.