Avis Budget Group is dropping its year-long pursuit to acquire Dollar Thrifty Automotive Group, according to reports.

The rental car company confirmed on Wednesday that it had ‘decided not to pursue a transaction at this time in light of current market conditions’, leaving Hertz as the sole bidder.

Avis Budget and Hertz Global Holdings – the US’s second and third biggest car rental operators, have been in a bidding war for Dollar Thrifty for the past 16 months. Dollar Thrifty has established itself in the low price market, offering leisure travellers value for money.

Hertz and Avis have made at least six offers each to acquire Dollar Thrifty, according to reports - with Hertz making the highest offer to date – reportedly worth more than $2 billion.

According to reports, Dollar Thrifty had instructed Hertz and Avis Budget to submit their final offers by October 10th.

Avis Budget Group disclosed in June a deal to acquire Avis Europe.