Hertz Global Holdings has agreed to buy rival Dollar Thrifty Automotive Group for about $2.56 billion (€2.05 billion) in a deal that puts about 95 per cent of the US car rental market in the hands of three companies.
The merger ends more than two years of on-off takeover talks for Dollar Thrifty involving Hertz, the second-largest US car rental company, and third-ranked Avis.
With the long coveted acquisition of fourth-ranked Dollar Thrifty, Hertz would further cement its lead over Avis while narrowing the gap with market leader Enterprise Holdings, which owns Enterprise, Alamo and National.
Hertz shares jumped 11 per cent to $14.65 while Dollar Thrifty shares traded up 7 per cent at $87.04, just below the offer price of $87.50. In a sign that investors welcomed industry consolidation, Avis shares also rose 4 per cent to $16.63.
The Hertz offer was a premium of 8 per cent to Dollar Thrifty’s Friday close of $81 and almost double a $1.2 billion offer Hertz made in April 2010. – (Copyright The Financial Times Ltd 2012)