Canada gives Antitrust Approval to Hertz and Dollar Thrifty
Hertz Global Holdings says that they have been given antitrust approval to buy Dollar Thrifty Automotive Group from Canadian authorities, but they didn’t say if they will top the high bid made for the budget brand last week by Avis Budget Group. Hertz says that they will keep working toward completing a deal with Dollar Thrifty soon.
Hertz and Avis Budget have been battling each other in the takeover of Dollar Thrifty, and they both started the process to get antitrust approval for the transaction in May and have received second requests from US authorities. It is expected that Avis Budget will be given antitrust approval in Canada as well without any issues. However, it will be a challenge for both companies to get approval from the US Federal Trade Commission (FTC), despite their willingness to unload some businesses.
A spokesperson for Hertz said last week that the US FTC is still reviewing information given to them at their request, and they haven’t gotten anymore updates. The car hire firm has agreed to divest their Advantage brand and as much as US$175 million worth of revenue-generating locations or business lines. Avis Budget, on the other hand, has agreed to divest up to US$325 million in revenue.
It is thought that Hertz has a better chance of getting approval, as they mostly focus on the more expensive car rental sector. This deal would allow them to reach the budget and leisure market more. However, Avis Budget already has a budget brand, which is a rival with Dollar Thrifty.
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