Northgate to merge with Redde in £1.1bn deal.

Northgate, a light commercial vehicle rental, agreed to merge with Redde, which provides car hire and repair services to motorists who are involved in accidents where they are not at fault, in £1.1bn ($1.4bn) deal. "The board is delighted to announce the recommended merger of Northgate and Redde. The combination will create a champion automotive services business with scale, reach and resources to provide mobility solutions to a broad customer base. The merger has compelling strategic logic - delivering an enlarged platform providing enhanced mobility solutions for vehicles and their users throughout the automotive services value chain. Both boards have identified significant cost synergies and opportunities for revenue cross-sell. This merger represents an attractive opportunity for both companies to further enhance their market-leading positions, delivering synergies, customer benefits, and shareholder value," Avril Palmer-Baunack, Northgate non-executive chairman.