As fleet sales and the used car market finally get back to normal, the land rush for vacated airport locations will produce a ground war on rates.
As a result of the FTC consent order, Hertz will be required to provide the company, or another FTC-approved buyer, with the right to operate on-airport concessions at an additional 13 airports.
Hertz revised earlier statements on the number of on-airport Dollar Thrifty locations it will have to divest, but said it has completed purchasing 99.6% of the shares of Dollar Thrifty common stock.
Who will get the vacated Dollar Thrifty airport counters and what will happen to rates?
According to the FTC’s complaint, Hertz’s original proposed acquisition of Dollar Thrifty would be anticompetitive and would violate both Section 5 of the FTC Act and Section 7 of the Clayton Act, in a number of airport car rental markets.
Hertz said it is assisting the Federal Trade Commission in its review of the case by addressing ‘matters raised by the Commissioners and the staff.’
Franchise Services of North America and its partner Macquarie Capital have signed a purchase agreement with the Hertz Corp. to acquire Advantage Rent-A-Car once certain divested assets from Dollar Thrifty meet regulatory requirements.
The deal is valued at $2.3 billion and $87.50 per share. Hertz will also sell Advantage to Franchise Services of North America and Macquarie Capital.
An antitrust litigator sheds some light on the FTC’s process regarding a Hertz merger with Dollar Thrifty.
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