The Federal Trade Commission has approved a slightly modified version of a settlement requiring Hertz Global Holdings Inc. to sell a number of assets in conjunction with its $2.3 billion acquisition of Dollar Thrifty Automotive Group Inc.
Under the settlement with the FTC, Hertz agreed to sell its Advantage Rent A Car business to Financial Services of North America (FSNA), along with the rights to 29 of Dollar Thrifty’s airport-based rental locations around the country, creating an independent rental car company with 72 locations.
Sixteen of the Dollar Thrifty locations were divested to FSNA shortly after the deal was completed, and most of the rest have been transferred in recent months, including the location at Ronald Reagan Washington National Airport (DCA), according to the FTC. The only remaining locations — those at New York City airports — will be transferred shortly.
The modified final order approved by the Commission adjusts some of the dates by which Hertz must transfer certain airport rental locations to the acquirer and clarifies some details regarding the possible resale of the divested assets by the acquirer and notification of key staffing changes. In addition, the modified order requires the divestiture of the Dollar Thrifty location at DCA, rather than the Advantage desk as originally contemplated, says the FTC.
The Commission vote approving the modified final order was 3-0-1, with Commissioner Joshua D. Wright not participating. Letters from members of the public who commented on it can be found on the FTC’s website. (FTC File No. 121-0120; the staff contacts are Michael R. Moiseyev, Bureau of Competition, 202-326-3106, and Daniel P. Ducore, Bureau of Competition, 202-326-2526.)
"We are pleased that the FTC has officially concluded its review of the Dollar Thrifty transaction," said Mark P. Frissora, Hertz chairman and chief executive officer. "Throughout this process we have worked closely with the agency, and the result has been a transaction that we believe will benefit our customers and shareholders for years to come."
Tom McDonnell, FSNA’s chairman and chief executive officer, said: "All of our team members and our partners have worked diligently through this transition and we are extremely pleased with completion of the acquisition process. We are making great progress in growing all of our brands."
Click here for the full FTC modified final order: http://www.ftc.gov/os/caselist/1010137/130711hertzdo.pdf
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