FRANKFURT: Volkswagen is in advanced talks to sell its 50 percent stake in financing arm LeasePlan as the carmaker cuts costs and refocuses its business, and a decision may be announced this week, people familiar with the matter said.

The Wolfsburg-based carmaker owns VW Leasing GmbH, its own in-house leasing business, and is increasingly relying on its Volkswagen Financial Services arm, making it harder to justify holding a stake in a third-party leasing business, LeasePlan.

The other 50 percent of Netherlands-based LeasePlan is owned by German bank Metzler, which would also sell its stake in a potential deal.

The two owners earlier this year hired investment bank Rothschild to find a buyer for the business, which may be valued at roughly 3 billion euro, according to sources.

A bidding consortium including the Abu Dhabi Investment Authority (ADIA), Singapore’s Government Investment Corporation (GIC) and private equity company TDR Capital had emerged as the frontrunner to clinch a deal, while other consortiums had also handed in bids, the sources said at the time.