Hertz bought its rival for US $2.3 billion

After trying for two years, the leader in car rental arrived at a definitive agreement with Dollar Thrifty

Hertz will pay 87.5 dollars in cash for each of the actions of Dollar Thrifty, implying a rise of 8% over the closing price of the last on Wall Street Friday, as both companies in a statement which can be seen in the Hertz web site detailed. We must remember that the acquired company was trading for under US $ 1 per share in March 2009.

The agreement, approved by the boards of Directors of both companies, includes also the sale of the subsidiary of Hertz Advantage Rent a Car Franchise Services of North America and Macquarie Capital, firms with what hope to avoid obstacles of regulatory authorities by any competition problems.

"We are delighted to have finally reached an agreement with Dollar Thrifty after a long, Although deserved, persecution", said the President and CEO of Hertz, Mark Frissora, who described the Pact as "best strategic for both companies".

This operation closed at 2.3 billion dollars, more than double what the signature buyer offered two years ago, will allow Hertz to secure second place in the American market.

In this sense, Frissora stressed that the transaction provides Hertz's two new well-established brands and "a wide range of rental offers" not only in United States but also in Europe and other markets, "thanks to the strong international presence" of Dollar Thrifty.

"Hertz you made an attractive offer to our shareholders, which reflects the strong points of our activity and our team," said the Chief Executive of Dollar, Scott Thompson. And he added that "Hertz is our logical partner and has resources to expand our brands in key markets".

The combined company will have a gross operating (ebitda) of $ 1.8 billion and a total of 10,000 offices around the world. The transaction will result in a savings of about $ 160 million annually for Hertz, thanks to the synergies that will result from it.

Two years ago the first offering,

Hertz had launched an initial offering of US $1,200 million Dollar Thrifty in April 2010, and since then presented several proposals improved. But all these were found with the rejection of the shareholders of the company, so even he came to announce that it renounced its attempts of absorption.

The firm not only faced the refusal of the shareholders of Dollar Thrifty, but also to the competence of his great rival Avis Budget, which offered $ 1.5 billion for her and even reached an initial agreement, but finally desisted in their attempts at the end of last year in 2010.

At the global level, this could have been the last merger of large companies of car rental United States accept regulators.

This is due to Hertz, Enterprise Rent-A-Car and Avis concentrated around 75% of the market, with the Dollar Thrifty has barely 5% according to a report from the consulting firm IBISWorld.