Boston, MA 04/22/2014 (wallstreetpr) – Hertz Global Holdings, Inc. (NYSE:HTZ) is a $13 billion holding company that provides car rental and leasing services. The company plans to bid for about ten rental car locations among those it was forced to divest to win regulatory approval for its tie-up with Dollar Thrifty. However, the move could undo the efforts by regulators to promote competition in the car rental industry.
Regulators asked Hertz to spin off Advance Rent A Car unit to a new buyer to resolve the anticompetitive issues that the regulators cited in a $2.3 billion deal to acquire Dollar Thrift. However, Advantage filed for bankruptcy in 2013 and Hertz has agreed to buy 10 locations belonging to Advantage.
The sale of Advantage locations will earn the parent company Franchise Services of North America Inc, about $6 million in cash proceeds.
Controversial approval
According to analysts and pundits, FTC approval of Hertz’s purchase of Advantage locations will amount to a reversal of the anticompetitive measures that the agency evoked in requiring the rental car operator to divest some assets in seeking a tie-up with rival Dollar Thrift.
However, some analysts also hold that Hertz’s repossession of 10 locations will not undo the anticompetitive measures in the rental car industry.
Expanding business
With a strong business plan, solid balance sheet and competitive expenses controls, Hertz Global Holdings, Inc. (NYSE:HTZ) seeks to expand its business through strategic acquisitions and competitive products and services. The company can also be seen penetrating into new markets and joining forces with strategic partners to increase revenue.
In addition to the competitive car rental and lease products and services, the company also employs breakthrough technologies to enhance customer experience. The combination of the business acumen of the management, competitive products and service and groundbreaking technologies, Hertz Global Holdings, Inc. (NYSE:HTZ) can be seen improving its performance.
Concerning the move by Hertz to repossess divested assets, it remains to be seen how regulators will handle the request. Nonetheless, it will be a victory for Hertz Global Holdings, Inc. (NYSE:HTZ) to get back some of what it considers quality assets.
