Twenty five years after they first separated, the European and US arms of car hire group Avis are set to be reunited.
Avis Europe has agreed to a £636m takeover from its US counterpart Avis Budget, and its major shareholder - Belgium's D'Ieteren - has said it will accept the offer. The deal is worth 315p a share in cash, and in the market Avis Europe shares have accelerated by 113.6p to 310.2p.
The European business originally separated from Avis Budget in 1986 and has an exclusive licence to use the brand across Europe, Africa, the Middle East and Asia. The deal will give the US business access to the fast growing emerging markets including India and China. The combined group will have annual revenues of $7bn and operate in more than 150 countries, and it expects synergies of $30m a year. Avis Budget chairman Ronald Nelson said:
This transaction represents...the acquisition of a business we have long sought to own. [It] re-unites the global operation of the Avis and Budget brands under one corporate umbrella, and is both financially and strategically compelling.
