Private equity firm leads chase for RAC

Private equity group Clayton Dubilier & Rice is the favourite to buy RAC from Aviva.

Clayton Dubilier & Rice would run the business alongside BCA Europe, the European second-hand car dealer it bought last year, the Sunday Times reported, without citing sources.

The first round of bids for RAC are expected to be launched today.

RAC is likely to fetch around £600m, or £1bn including debt, it added.

Insurance Times revealed last month that Aviva hired J.P. Morgan to run the auction.

Other bidders are thought to include private equity firm Carlyle, which like Clayton Dubilier & Rice owns a stake in car rental firm Hertz, the paper said.