Car rental giant Hertz is in the process of purchasing Dollar Thrifty. The deal is said to be for $2.3 billion, according to an Associated Press report. As a result, Dollar Thrifty stock increased by seven percent in trading before the market opened today.

According to the report, Hertz has been eying its rental car rival for two years now. Additionally, Avis Budget Group was also interested in purchasing Dollar Thrifty. Hertz made the move, though, at a price of $87.50 per share, representing an eight-percent premium over Friday's closing price for the stock of $81 per share.

In a statement, Hertz Chairman and CEO Mark P. Frissora said that the buyout will give his company two more well-known brands and make the company more competitive in Europe and other international markets.

While both parties have agreed to the deal, the Federal Trade Commission must approve the acquisition. According to the report, Hertz has maintained an open line of communication with the FTC throughout the process.

Hertz has roughly 8,650 locations of various types in 150 nations throughout the globe. Dollar Thrifty has about 280 locations in the U.S. and Canada and 1,300 franchise locations worldwide. The two corporations when combined fulfills Dollar Thrifty President and CEO Scott Thompson's assertion that the "transaction is not only compelling for stockholders, but also will help broaden its reach." In addition, the deal is also projected to save Hertz $160 million each year.


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  • 31 Comments
      brgtlm
      • 2 Years Ago
      Concentrating rental pricing and supply in the hands of three rental conglomerates will only serve to raise prices. Dollar Thrifty tended to have lower pricing in my experience than the other three conglomerates - now that Hertz has bought them, there goes downward pricing pressure. Seems to be what we are stuck with here in the US - consolidation, less competition and higher pricing in many industries.
        • 2 Years Ago
        @brgtlm
        [blocked]
          Essende
          • 2 Years Ago
          Actually Miami is one of the cheapest places to rent cars in USA. Because of large tourism industry, they have a lot of competing little car rental places. Renting a car in Northeast is another story though.
      Spartan
      • 2 Years Ago
      " In addition, the deal is also projected to save Hertz $160 million each year." So I guess the layoffs will begin here shortly.
      Sean
      • 2 Years Ago
      This is going to suck for prices among the national chains, but the smaller brands are coming. Advantage and Payless are in quite a few places, and Sixt is establishing itself after making its name in Europe. And then you have Zipcar battling it out with HertzOnDemand...renting a car is far from being a one pony show I think.
      hollasteve
      • 2 Years Ago
      I hope Hertz doesn't lose sight of the fact that Dollar is successful because they offer reasonable rates and don't try to foist a Toyota or some other POC on you. Are you listening, Hertz?
      Drakkon
      • 2 Years Ago
      Half the money for deal came from toll booth coins left behind in the ash tray.
      s230
      • 2 Years Ago
      Y'all crazy. Hertz so much more prestigious than Dollar....Ya'all should be happy to be cruising in more class now! Just drop some more coin for that Hertz Impala! It way better than some ol Dollar Impala!
      • 2 Years Ago
      [blocked]
      kikaiju2
      • 2 Years Ago
      With Hertz in the Ford camp and Dollar Thifty in the Dodge camp one auto brand is going to lose here.
      Bob
      • 2 Years Ago
      Hetz is by far the worst car rental company I've ever dealt with. @ weeks ago I waited almost 3 hours for a car at the Portland, Oregon airport. There were 40 people in front of me waiting and 25 behind me. My sister in law waited 2 hours at the same Herts at the Portland, Oregon airpor 3 days before. Their excuse was they were waiting for new cars from out of state. They told her that also 3 days before. Stay away from HERTZ!!!
      Rose
      • 2 Years Ago
      A couple of months ago we had the worst experience ever in our dealings with Thrifty/FOX in LAX. The quoted online price somehow ends up 150% more once they ad up all the charges including the insurance you decline but they assure you need (to which once you complain on returning, is that not your signature sir!) We saw many others complaining on return about being overcharged, including another family from Australia with a disabled son who were forced to play $2000 extra over the quoted price for their minivan hire car for the month. We were pleasantly surprised with Alamo in LAX that restored out faith that there are honest operators that dont charge a dollar more than the quoted price. We will never use Hertz , Dollar (Thrifty Fox) and are telling anyone going to your beautiful country not to ruin their experience buy using them. They are a disgrace to the industry and the mangers and owners of the franchisers who condone overcharging clients with unnecessary items should hang their heads in shame if they were capable of remorse. Kudos to Dollar management for offloading a dysfunctional morally corrupt entity and commiserations to Hertz .
      cobaltmuscle
      • 2 Years Ago
      Another corporate giant taking over another company.....Nothing against Hertz, however we now have a few less choices...
      Slartibartfast
      • 2 Years Ago
      SO how many airport locations will now be down to Avis brands vs Hertz brands? I'm usually pro-company, but this is a real loss to the consumer if it's approved.
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