Hertz Global Holdings Inc. has formally entered into a long-term partnership agreement with Localiza, a South American-based rental car company, following approval by the country's antitrust authority, CADE.  

As part of the agreement, which was originally announced on Dec. 5, 2016, Hertz has now completed the sale of its Brazil car rental and leasing operations to Localiza.

Both companies have entered into referral and brand cooperation agreements to govern their ongoing relationship. The alliance will also involve the exchange of know-how in areas of technology, customer service, and operational excellence, according to Hertz.

Under the referral and brand cooperation agreements, 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 serve visitors from Brazil.

Similarly, Hertz customers traveling to Brazil will be referred to Localiza, with "Localiza Hertz" branding in most locations, providing them access to a broader network of locations and a larger vehicle fleet than previously offered by Hertz Brazil, according to the company.

The purchase price for the Hertz Brazil operation, which includes both car rental and vehicle leasing, closed at R$360 million — subject to post-closing adjustments concluding a financial audit.

"We are proud to partner with Localiza, with whom we share similar values of innovation and customer excellence,” said Kathryn V. Marinello, president and CEO of Hertz. “This agreement brings together two leading brands and an enhanced product and service offering for our respective customers as they travel the world."

"We are very motivated by the start of this long-term strategic partnership that represents a new milestone for the development of the sector,” said Eugenio Mattar, CEO of Localiza. “Customers from both companies will have innovative services, attendance, and solutions to facilitate their mobility and improve their experience of car rental and vehicle leasing."