Avis Budget Receives More FTC Instruction Regarding Potential DTAG Acquisition
PARSIPPANY, N.J. — Developments connected with Avis Budget Group's attempt to acquire the Dollar Thrifty Automotive Group took another turn Tuesday. The latest news Avis executives shared had to do with instructions from the Federal Trade Commission.
The company revealed it has received a request for additional information, what management termed a "second request." Executives stress they're continuing to cooperate with the FTC in their review of this potential transaction.
This situation has been developing since news first broke in late April about a possible transaction.
Hertz Global Holdings announced its intent to acquire DTAG on April 26 in a move officials said would help Hertz grow its global footprint to become the second largest vehicle-rental company in the U.S., among other benefits.
Then a little more than a week later, Dollar Thrifty issued a public letter to Avis Budget saying that its board was ready to entertain a substantially higher offer to acquire the company.
Avis Budget responded on May 13 filing for antitrust approval of its potential acquisition of Dollar Thrifty. Specifically, Avis Budget officials said the company filed notification with federal antitrust authorities under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended, regarding its potential purchase of Dollar Thrifty.
However, DTAG and Hertz went on to file notification with federal antitrust authorities. Hertz executives insist that they expect their acquisition to face fewer antitrust hurdles than the potential rival bid by Avis Budget.
Hertz contends Avis Budget already operates a significant value brand, Budget Rent A Car, which competes directly against Dollar Thrifty. By contrast, Hertz stressed that it does not have a national value brand.