Hertz' $2.6 billion purchase of Dollar Thrifty cleared by FTC
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WASHINGTON (Bloomberg) -- Hertz Global Holdings Inc.’s $2.6 billion purchase of Dollar Thrifty Automotive Group Inc. was cleared by U.S. antitrust regulators after the company agreed to divestitures ensuring the deal doesn’t harm consumers.
Hertz agreed to sell its 62 Advantage brand outlets along with the rights to operate 29 Dollar Thrifty on-airport locations, the U.S. Federal Trade Commission said in a statement.
“We have reached a compelling agreement with the FTC and are pleased to finally move forward as one company,” said Hertz Chairman and CEO Mark Frissora in a statement. “We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies.”
The acquisition, first attempted five years ago, will secure Hertz’s place as the second-biggest player in U.S. rental-car market as it takes over Dollar Thrifty, now the No. 4 company in the industry. Enterprise Holdings Inc. is the biggest.
“American consumers rent more than 50 million vehicles at airports nationwide each year, spending $11 billion, so this is a real pocketbook issue for everyday people,” said FTC Chairman Jon Leibowitz. “Today’s bipartisan action by the FTC will ensure that consumers are not forced to pay higher prices for rental cars when they travel.”
The $87.50-a-share offer represents an 8 percent premium to Dollar Thrifty’s closing price of $81 on Aug. 24. The price is more than twice the $41-a-share Hertz offered in April 2010.
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