CHEAP CAR RENTAL

Dollar Thrifty Group (DTG) to be taken over by Hertz.

It has been announced this morning that DTG have accepted $87.50 a share cash offer worth $2.6b from Hertz. Whilst the deal is subject to approval it is likely to be concluded by the end of 2012.

As part of the deal, to help the chances of obtaining the necessary approval, Hertz will sell its discount operation Advantage Rent a Car to Franchise Rent a Car and Austalian MacQuarie Capital but only if the DTG deal goes through.

The result will leave three rental companies namely Avis (inc Budget), Enterprise, which will remain largest and Hertz predominate in the market with 75% of the US market. No other company will have more than 1% of the US market.

	Enterprise Alamo/National/Europcar	Hertz inc 81 Advantage locations	Dollar Thrifty
Locations	6187	2500	2300

Hertz is a public company that originally was started as a division of Ford Motor Company but sold off in 2005 . It originally made an offer for DTG valued at $1.2b but this was rejected by the DTG shareholders. Avis then investigated purchasing DTG but anti-trust problems made this a difficult deal to pursue.

Dollar Thrifty Group, which started as a division of Chrysler, was nearly insolvent in 2008 and severely affected by Chrysler entering chapter 11. However since then it has been making substantial and increasing profits for the last three year.

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Last edited 28 December 2012 cheap-car-rental.com