Avis Budget Seeks Dollar Thrifty Clarity

Hi all,

Just to keep you updated on the soap like episodes of the on going saga of car rental giant Avis Budget Rent A Car‘s proposed purchase of Dollar Rent A Car.

In the past we have seen Dollar share holders reject a very strong looking Hertz bid in favour of the seemingly more lucrative but a trickier to complete Budget deal.

Avis Budget hope to get clarification from the U.S. Federal Regulators within the next two weeks.

Our discussions with the U.S. Federal Trade Commission (FTC) have been very constructive, although we are not yet at a point of resolution,” Avis’ CEO Ronald Nelson said on a quarterly earnings conference call with analysts.

The potential problems for the deal surround Avis’s  ownership of low cost brand Budget Rent A Car, who already compete against Dollar and Thrifty in many of the same markets.

Experts state that the sale of Dollar to Avis could leave the consumer worse off as the USA Car Hire market  is predominately fought by 4 major brands, Alamo Rent A Car (Enterprise), Hertz, Avis/Budget and Dollar/Thrifty, so the sale would give the customer less choice.

The next couple of weeks are very important to Avis/Budget, I will keep you posted with any new developments.



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