FTC Said To Be Close To Agreeing Hertz Dollar Deal

Hi all,

We all thought the Hertz Dollar Thrifty takeover deal was all done and dusted when we confirmed the two parties had agreed a price back in August, all that was required was confirmation from the FTC that the deal could go ahead…

This however was not as straight forward as suggested, the Hertz takeover of Dollar Thrifty would leave the U.S. market heavily dominated by only 3 companies,  obviously Hertz/Dollar/Thrifty, Enterprise (Alamo & National) and Avis/Budget. So this buyout would represent the last ever big consolidation deal in the U.S. and the FTC are rightly concerned about getting this right, as many have voiced competition concerns.

Hertz on their part have agreed to sell Advantage Rent A Car (their low cost brand) to Franchise Services of North America for $16 million in a bid to help the deal along, however FTC insiders believe that this isn’t seen as enough.

The FTC is really concerned about Hertz dominating airport locations with 3 very popular brands, from what we understand it has been suggested that Hertz give up some of their airport locations approx 15 which are said to include Detroit and Cleveland. Hertz are very keen to push this deal through and the sale of airport locations is said to be a very real possibility.

With this condition in place the FTC are said to be ready to approve the deal shortly.

regards,

James

 car hire USA


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