DETROIT (Bloomberg) -- Rental car giant Avis Budget Group Inc. said it will abandon efforts to acquire Dollar Thrifty Automotive Group Inc., citing market conditions.
"We have decided not to pursue a transaction at this time in light of current market conditions," Avis said today in a regulatory filing.
The company's bid for Dollar Thrifty was worth $1.55 billion as of Tuesday. Avis and Hertz Global Holdings Inc., the two largest publicly traded U.S. auto-rental chains, have been seeking U.S. Federal Trade Commission approval to buy Dollar Thrifty, the fourth-largest rental-car company in the U.S. market.
Avis said it was dropping its bid even though it made "significant progress" in efforts to get U.S. regulatory approval for the acquisition and that "clearance could be obtained."
Dollar Thrifty told Avis and Hertz on Sept. 7 that it wanted final offers by Oct. 10. Dollar Thrifty shareholders rejected Hertz's offer in September 2010. Hertz, after calling that bid "final," renewed its pursuit in May with an offer valued at $1.92 billion as of Tuesday.
Dollar Thrifty recommended on June 6 that investors not accept Hertz's bid because it undervalues the company.
Richard Broome, a Hertz spokesman, didn't immediately respond to a phone message and e-mail seeking comment.