Hertz Global Holdings reportedly is set to acquire Dollar Thrifty Automotive Group (DTAG) for roughly $2.5 billion, according to press reports from Reuters, the New York Times and the Wall Street Journal. The car rental company could announce details of the deal as early as Monday.
Under the terms of a deal, Hertz would buy DTAG for $87.50 per share, according to press reports, an amount that DTAG executives have reportedly said could be acceptable. The agreement comes after a months-long battle by Hertz to acquire DTAG and will most likely result in Hertz divesting itself of Advantage Rent a Car, which is acquired two years ago. Avis Budget Group also has bid for DTAG, but at press time there was no word if the company would seek to top Hertz’s bid. DTAG had recently pursued a go-it-alone strategy.
Hertz and DTAG were said to be in talks over the weekend, but published reports said there was no guarantee an agreement would be reached.
A combination of Hertz and Dollar Thrifty would end a protracted and contentious takeover saga in which the Avis Budget Group (CAR.O) also tried to acquire Dollar Thrifty, the fourth-largest car rental company in the United States.
A Hertz-DTAG merger would leave just three car rental companies in control of roughly 95 percent of the U.S. car rental market. The other two are Enterprise Holdings, which owns Enterprise, Alamo and National, and Avis Budget, which controls the Avis and Budget brands. In an effort to win government approval of its DTAG deal, Hertz has told the Federal Trade Commission that it would sell budget brand Advantage.
Steele Luxury Travel
www.SteeleTravel.com