Hertz wins FTC approval for Dollar Thrifty merger
BY Staff Reports
Thursday, November 15, 2012
11/16/12 at 3:24 AM
Hertz Global Holdings won approval from the Federal Trade Commission Thursday for its proposed $2.3 billion merger with Tulsa-based Dollar Thrifty Automotive Group.
Commissioners voted 4-1 to allow the deal. Hertz next will attempt to complete its tender offer for shares of Dollar Thrifty at $87.50 per share. The offer is scheduled to expire Friday, unless it is extended.
To win antitrust clearance, Hertz said it would divest certain airport outlets. Hertz also agreed to sell its Advantage brand to Franchise Services of North America Inc. and Macquarie Group Ltd.'s Macquarie Capital.
Once completed, the combination with Tulsa-based Dollar Thrifty would bolster Hertz's position as the No. 2 player in the U.S. rental-car market, enabling it to better compete with the industry leader, Enterprise Holdings Inc.
Together, Hertz, Enterprise Rent-A-Car and Avis Budget Group Inc. control about 75 percent of car rentals, with Dollar Thrifty holding 5 percent, according to a February report from IBISWorld. No other competitor has more than 1 percent of the $30.5 billion market in the U.S. this year, according to IBISWorld, the Santa Monica, Calif.-based industry researcher.
Hertz, with 8,750 outlets worldwide, has more than 3,900 U.S. locations, and Dollar Thrifty has about 280 corporate-owned outlets in the U.S. and Canada.
Dollar Thrifty has 780 employees in Tulsa; Hertz's biggest operation is its 1,700-person center in Oklahoma City. Hertz said it will evaluate staffing and functions at both locations after the merger.