In an effort to help the deal gain regulatory approval, Hertz agreed to sell its Advantage Rent-A-Ca

Hertz Global Holdings Inc. s move to buy Dollar Thrifty Automotive Group Inc. would cap more than a decade of consolidation in the U.S. rental-car industry, bringing the number of major players to three from nine.
After several weeks of negotiations, the companies were nearing a deal in which Hertz would buy Dollar Thrifty for $87.50 a share, or about $2.5 billion, a person familiar with the matter said. The companies boards were expected to meet Sunday, the person said.
In an effort to help the deal gain regulatory approval, Hertz agreed to sell its Advantage Rent-A-Car brand for $16 million to Franchise los angeles california attractions Services of North America Inc. and Macquarie Capital, the investment banking arm of Australia s Macquarie Group Ltd., a person familiar with the deal said. Based in Calgary, Alberta, Franchise Services of North America operates brands including U-Save Car Truck Rental and Xpress Rent-A-Car Services.
If the Dollar Thrifty deal is approved by regulators, the U.S. industry s major players will be Hertz, Enterprise Holdings Inc. and Avis Budget Group Inc., which is a former Dollar Thrifty suitor. The consolidation has worried consumer advocates who fear price increases los angeles california attractions in a shrunken industry.
Rental prices have spiked and fallen since the late 1990s, though not necessarily as a direct result of consolidation, analysts los angeles california attractions said. For example, car-rental rates soared late last decade as Detroit auto makers, contracting amid the economic crisis, reduced sales to rental-car los angeles california attractions fleets because of their thin profit margins and raised prices on the vehicles.
Driver's Seat is a blog featuring news, views, and advice about cars, auto safety, driving, and transportation. Driver's Seat is written by Jonathan Welsh with contributions from auto critic Dan Neil, columnist Joe White and Wall Street Journal staffers and others.