Hertz Gets Anti-Trust Nod to Buy Dollar Thrifty

The U.S. Federal Trade Commission has approved Hertz Global Holdings Inc.'s $2.6 billion acquisition of rival car-rental company Dollar Thrifty Automotive Group, thus ending a five-year takeover battle.

The FTC says it dropped its anti-trust objections to the deal when Hertz agreed to sell its Advantage budget brand and divest 91 Hertz and Dollar Thrifty outlets. The agency says those actions will protect consumers from price gouging.

The acquisition cements Hertz's current position as America's second-largest car-rental company after Enterprise Holdings Inc. Avis remains in third place. The three companies will control more than 95% of the U.S. market, according to Reuters.

Until fairly recently, the biggest rental car firms were owned by carmakers, which used them as outlets for their vehicles. Ford owned Hertz from 1987 to 2005. Chrysler Group merged Dollar and Thrifty in 1990 and spun it off in 1997. General Motors owned large stakes in National Car Rental (1988-1995) and Avis (1989-1996).