Hertz Global Holdings managed to finally close a deal and buy Dollar Thrifty Automotive Group for $2.6 billion.
The company has tried more than 5 years to buy Dollar Thrifty, and the final price was more than double what Hertz offered two years ago. Hertz Chief Executive Officer Mark Frissora considers that it was worth the half a decade struggle to close a deal, which is considered the last agreement between US car rental companies that regulators would accept.
This deal made Hertz Global Holdings become the second player in the US market. A report made in February showed that Hertz, Enterprise Rent-A-Car and Avis Budget Group controlled 75% of the market, and Dollar Thrifty only 5%.
“We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy — but worthwhile — pursuit,” Frissora said in the statement. “We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies.”
Hertz ‘hunt’ for Dollar Thrifty began in 2007 and in 2010 it made a formal bid of $1.2 billion, which was rejected by the company. In 2011 Hertz made another offer, which the company withdrew due to market conditions.