Avis Budget Group agreed
to purchase Avis Europe for about $1 billion in a deal that "unifies Avis and Budget brands
globally under single corporate ownership," according to a company
statement. Avis Budget expects the purchase to close in October, subject to the
necessary shareholder and regulatory requirements.
The deal, in which Avis
Budget will pay £3.15 in cash for each Avis
Europe share, signals the end of Avis Budget's pursuit of Dollar Thrifty Automotive Group, according to MKM Partners
analyst Chris Agnew.
"While Avis Budget will continue to monitor the Dollar Thrifty
situation," according to an Avis Budget statement, "the company's
focus squarely will be on completing and integrating the significant
acquisition of Avis Europe."
"We believe this news is
positive for Hertz," according to Agnew, "as, subject to regulatory
approval, it clears the way for a highly strategic acquisition that is
accretive at the current exchange offer." Hertz last month proposed to acquire Dollar Thrifty for more than $2
billion, or $72 per share in cash and stock.