Car rental giant Hertz has won regulatory approval from the Canadian Competition Bureau (CCB) for its proposed merger with Dollar Thrifty.
Hertz - the largest worldwide general use car rental brand – filed a $1.2 billion takeover bid for its smaller rival in May this year.
The New Jersey-based company was notified by the CCB it wouldn’t block or slow a possible deal earlier this week, once a period in which the regulators could have asked for more information about the deal had expired.
Hertz chairman Mark Frissora explained: “Getting Canadian antitrust regulatory approval is another step in the process for us to successfully complete the merger with Dollar Thrifty which we look forward to completing in the near future.
[stock]HTZ|1m|Right|Hertz moves closer to Dollar deal[/stock]
“Dollar Thrifty’s well-established presence in the value leisure segment of the US and Canadian airport car rental markets, as well as other key international markets, complements Hertz’s global presence in the business and premium leisure car rental segments.”
However, the deal is still some distance from being completed, with rival car rental firm Avis launched a counter bid last week.
The rival bid values the company at $1.3 billion, still some way below the price expected by Dollar Thrifty investors.
Dollar Thrifty shareholders are scheduled to vote on the Hertz deal on September 16th.
In morning trading, Hertz shares rose 13 cents to $11.87; Dollar Thrifty gained 38 cents to $50.25, and shares of Avis climbed 30 cents to $12.64.