NORTHGATE has gained control of Spanish rental business Fualsa after securing the remaining 60 per cent of the company over the Bank Holiday weekend.

Darlington's only public limited company (plc), which owned 40 per cent of the business, paid 22.3m euros for a further 40 per cent stake on Monday, and has until May 2006 to pay for the final fifth.

The cost of the final 20 per cent will be depend on profits after tax for this year and next, with a ceiling price of 14.9m euros.

The deal gives the light commercial vehicle hire company a presence in a market that Northgate predicts will boom during the coming years.

Steve Smith, Northgate chief executive, said: "The Spanish market is ten years behind Britain.

"Fualsa has gone at least as well, if not better, than we had hoped."

Northgate also said there was to be a shake-up of the company's board, sparked by the announcement that chairman Michael Waring was to retire.

Mr Waring has been with the business for nearly 20 years and has seen it evolve and expand from a company with a market capitalisation of £19m to one with £400m.

Mr Smith said: "He will be a loss because he has a lot of experience in the business.

"We need to find somebody who can offer the same wisdom and take the business forward."