Hertz to Buy Dollar Thrifty

Hertz Global Holdings Inc. has agreed to buy Dollar Thrifty Automotive Group Inc. for $2.6 billion, after a five-year takeover struggle.

The purchase price of $87.50 per share is more than double the amount the rental car giant originally offered in April 2010.

The deal hinges on Dollar Thrifty shareholders tendering a majority of their shares. Hertz says it expects the U.S. Federal Trade Commission to approve the deal by October. The company has pledged to divest its Advantage budget rental brand as part of the agreement.

The acquisition would create a company with revenue of more than $10 billion and solidify Hertz's rank as second in U.S. market share behind Enterprise Rent-a-Car and ahead of Avis Budget Group. Avis joined the buyout fight for Dollar Thrifty for more than a year in its early stages.

Analysts tell Bloomberg News that the transaction may be the last merger of major U.S. car-rental companies that anti-trust authorities allow. Hertz, Enterprise and Avis control three-quarter of the American market, the news service says.