TULSA, Okla. -
The Federal Trade Commission appears to be “uncertain” about the competitive issues surrounding the proposed merger of Dollar Thrifty Automotive Group and Avis Budget Group, the two companies report in an update Tuesday regarding their ongoing dealings with regulators.
In seeking the green light from the FTC to move ahead with the acquisition, Avis and DTAG argue that a merger between the two would not lead to any competition drop-off in the rental industry.
The companies suggest that rivals Enterprise/Alamo/National and Hertz/Advantage would still bring “intense competition” to the market, as will smaller rental companies.
Furthermore, Avis contends that costs would go down tremendously with a merger. It would also lead to "other operational efficiencies," as well, the company said.
“These synergies and the increased ability of the combined company to compete against other competitors in the marketplace will benefit all rental car consumers, particularly Dollar Thrifty’s core leisure customers,” the companies said in a joint statement.
They noted that the discussions with the FTC have shown much headway. However, the companies stressed that the regulatory agency’s stance still isn’t very clear, though.
“Avis Budget and Dollar Thrifty believe substantial progress has been made in the discussions with the FTC on these issues, but the FTC’s position with respect to the competitive issues remains uncertain,” they noted.
Under the “Second Request” review process, documents totaling “millions of pages” and comprehensive data on the rental industry as well as the two companies has been handed over to the FTC by Avis and DTAG.
Both of the companies have told regulators that they plan on certifying “substantial compliance with the Second Requests on a timetable that would require an official decision from the FTC by the end of March or early April.”
The companies’ statement continued: “As the FTC review process continues, Avis Budget and Dollar Thrifty remain focused on building their individual businesses to drive continued growth and maximize value for shareholders.
“Dollar Thrifty and Avis Budget reiterate that they have no agreement with respect to any merger or other business combination, and that there can be no assurance that any such transaction (or the terms thereof) can be agreed upon,” they concluded.