Hertz to acquire Dollar Thrifty - Car Rental News
Hertz to acquire Dollar Thrifty
Car Rental News - 27/08/2012
Officials have announced a major takeover deal in the US car hire market.
Officials have announced a major takeover deal in the rapidly-consolidating US car hire market.
Hertz Corporation said on Monday that it had reached an acquisition agreement with smaller car hire provider Dollar Thrifty, marking the culmination of more than two years of merger efforts.
Reports said that the deal is worth some $2.3 billion (£1.45 billion) and that the latest offer from Hertz had been unanimously approved by the boards of both of the car hire providers.
An official statement said that the merger would see the launch of a “multi-brand” global car hire provider with a full array of rental options.
The news follows a prolonged bidding war between Hertz and rival Avis Budget. The two major companies have sought the smaller firm since 2009; until now all previous offers have been rejected by the Dollar Thrift board. However, Dollar Thrifty’s president chief executive Scott Thompson said on Monday that the latest offer from Hertz had been “compelling” and would benefit both parties.
Meanwhile, Hertz CEO and chairman Mark P. Frissora said in a statement that the move would make his organisation a “stronger competitive player”.
Despite the merger, Hertz will remain the second largest US car rental firm behind Enterprise Holdings, if officials are able to secure a green light from US regulatory authorities.