Hertz has offered various concessions to snag its competitor, but the FTC’s fears transcend this one deal, which is serving as a prime example of the extreme consolidation of the rental car industry over the past decade.
Hertz Global Holdings Inc. (HTZ +7.26%) has tentatively agreed to shed about a dozen locations at U.S. airports in a concession aimed at winning U.S. regulatory approval for its proposed acquisition of rival Dollar Thrifty Automotive Group Inc., (DTG +5.40%) according to people familiar with the negotiations.
By offloading airport locations, Hertz aims to allay Federal Trade Commission concerns that a combination of the rental-car giants could hurt consumers by giving the joint company too much control over the rental-car market, particularly at airports.
The Daily Newsletter
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Photo credit: A Hertz car rental shuttle pulls away from Los Angeles International Airport. Atomic Taco / Flickr.com