Rental-car company Hertz Global Holdings Inc. (NYSE:HTZ) is buying rival Dollar Thrify Automotive Group Inc. (NYSE:DTG) for about $2.3 billion in cash to increase its global reach.
"The transaction provides Hertz instant scale with two new, well-established brands with airport concession infrastructure in the mid-tier value segment," Hertz said in a statement. "We'll be a stronger global competitive player with a full range of rental options not only in the U.S. but in Europe and other markets, given Dollar Thrifty's strong international presence."
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The combined company would have sales for the 12 months ended June 30, 2012, of $10.2 billion and earnings before interest, taxes, depreciation and amortization of about $1.8 billion across approximately 10,000 locations globally. Hertz expects annual cost reductions of about $160 million after the merger.
In premarket trading, shares of Hertz jumped $1.95, or 15.2 percent, to $15.15 and shares of Dollar Thrifty climbed $5.88, or 7.3 percent, to $5.88.
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