Hertz Global Holdings Inc. has reached a long-term agreement with Localiza, a South American rental car company.

As part of the agreement, which is subject to approval by the Brazilian antitrust authority (Administrative Council for Economic Defense or CADE), Localiza will purchase the Hertz operation in Brazil for an expected purchase price of $9.9 million.

In addition, Localiza customers traveling outside of South America will be referred to Hertz reservation channels. In select markets, including the U.S., Hertz expects to display the Localiza brand at key airport locations that frequently serve visitors from Brazil. Similarly, Hertz customers traveling to Brazil will be referred to Localiza, with "Localiza Hertz" branding in many locations.

"This agreement enables us to partner with South America's largest rental car company, extending the reach of the Hertz brand in Brazil and leveraging Localiza's customer base when they travel outside of South America, said John Tague, Hertz Global Holdings president and chief executive officer. “Additionally, Hertz customers traveling to Brazil will have access to an expanded service offering through Localiza's network."

"This partnership represents a milestone in the history of car rental in Localiza and in Brazil," said Eugenio Mattar, Localiza chief executive officer. "Hertz is a widely recognized brand with a strong international presence. We have many common qualities: business expertise, excellence in service and innovation DNA.”