Hertz Global Holdings late Thursday said it reached an agreement with the U.S. Federal Trade Commission allowing the company to complete its acquisition of Dollar Thrifty Automotive Group.

Under the terms of the proposed consent order that was approved by the FTC for public comment, Hertz is required to divest its Advantage business, selected airport concessions and certain other assets following the closing of the acquisition.

“We have reached a compelling agreement with the FTC and are pleased to finally move forward as one company,” said Hertz chairman and chief executive officer Mark Frissora.

“We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies, and we look forward to becoming a stronger global competitive player in the industry,” Frissora continued. “We are confident that the employees, customers and shareholders of both companies will benefit from the value this combination will create.”

As previously announced, Hertz reached an agreement to sell certain assets to Adreca Holdings Corp., a subsidiary of Macquarie Capital. That subsidiary is operated by Franchise Services of North America, an experienced operator of car rental brands including U-Save Car & Truck Rental, Rent-a-Wreck of Canada, Practicar and Xpress Rent A Car.

Hertz also agreed to use its commercially reasonable efforts to ensure that Adreca at 13 locations and either Adreca or another third party at an additional 13 locations, has the right to an on-airport operation. 

“Hertz hopes to be able to continue operating both the Dollar and Thrifty brands on airport at a number of these airports,” officials said.

Hertz indicated approval of the proposed consent order effectively completes the review of the transaction by the FTC.

"American consumers rent more than 50 million vehicles at airports nationwide each year, spending $11 billion, so this is a real pocketbook issue for everyday people," FTC chairman Jon Leibowitz said. "(Thursday's) bipartisan action by the FTC will ensure that consumers are not forced to pay higher prices for rental cars when they travel."

The FTC commission's vote approving the complaint and proposed settlement order was 4-1, with commissioner Thomas Rosch voting no.

"I voted against acceptance of the consent decree because I found it inadequate to resolve the competitive concerns at several dozen other airports affected by the transaction," Rosch said. "I would have instead voted to challenge the transaction because of the significant risk of post-merger coordinated interaction among the remaining competitors."

The closing of the previously announced cash tender offer to purchase all outstanding shares of common stock of Dollar Thrifty for $87.50 per share is also subject to customary terms and conditions, including the acquisition by Hertz of a majority of the outstanding shares of Dollar Thrifty common stock on a fully diluted basis.

The tender offer is scheduled to expire at 5 p.m. ET today unless further extended in accordance with the merger agreement and the applicable rules and regulations of the U.S. Securities and Exchange Commission.

Officials pointed out the tender offer statement and related materials have been filed with the SEC.

Dollar Thrifty stockholders who need additional copies of the tender offer statement and related materials or who have questions regarding the offer should contact Innisfree M&A, the information agent for the offer at (877) 456-3507.