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Hertz Gets Regulatory Approval to Buy Dollar Thrifty for $2.3B

The car rental company will have to sell off its Advantage-Rent-A-Car business under terms of an agreement with the Federal Trade Commission

Rental Car company Hertz Global Holdings Inc. (NYSE: HTZ) has gotten regulatory approval from the Federal Trade Commission to buy Dollar Thrifty Automotive Group Inc. (NYSE: DTG) for $2.3 billion.

Park Ridge, N.J.-based Hertz is required to sell its Advantage Rent-A-Car business, as well as the rights to operate 29 Dollar Thrifty Automotive Group Inc. airport locations to go forward with the deal.

Franchise Services of North America Inc. and Macquarie Capital (USA) Inc. will buy the Advantage business and 16 airport locations.

Hertz will sell the remaining 13 locations after the deal closes. The deal was announced Aug. 27.

The sales will settle the FTC’s complaint that the deal would have been anticompetitive.

Hertz withdrew a bid for Tulsa, Okla.-based Dollar Thrifty on Oct. 27, 2011. A year earlier, in fall 2010, Dollar Thrifty’s shareholders voted against Hertz’ $1.46 billion offer.

Avis Budget Group pulled out of the bidding process on Sept. 14, 2011 after problems getting regulatory clearance.

Hertz agreed to acquire vehicle leaser Donlen Corp. for $250 million, plus $680 million in debt assumption, in July 2011.

 

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