After several weeks of negotiations, the companies were nearing a deal in which Hertz would buy Doll

Hertz Global Holdings Inc. s move to buy Dollar Thrifty Automotive Group Inc. would cap more than a decade of consolidation in the U.S. rental-car industry, bringing the number confort inn of major players to three from nine.
After several weeks of negotiations, the companies were nearing a deal in which Hertz would buy Dollar Thrifty for $87.50 a share, or about $2.5 billion, a person familiar with the matter said. The companies boards were expected to meet Sunday, the person said.
In an effort to help the deal gain regulatory approval, Hertz agreed to sell its Advantage Rent-A-Car brand for $16 million to Franchise Services of North America Inc. and Macquarie Capital, the investment banking confort inn arm of Australia s Macquarie Group Ltd., a person familiar with the deal said. Based in Calgary, Alberta, Franchise Services of North America operates brands including U-Save Car Truck Rental and Xpress Rent-A-Car Services.
If the Dollar Thrifty deal is approved by regulators, confort inn the U.S. industry s major players will be Hertz, Enterprise Holdings Inc. and Avis Budget Group Inc., which is a former Dollar Thrifty suitor. The consolidation has worried consumer advocates confort inn who fear price increases in a shrunken confort inn industry.
Rental prices have spiked and fallen since the late 1990s, though not necessarily as a direct result of consolidation, analysts said. For example, confort inn car-rental rates soared late last decade as Detroit confort inn auto makers, contracting amid the economic crisis, reduced sales to rental-car fleets because of their thin profit margins and raised prices on the vehicles.
Driver's Seat is a blog featuring news, views, and advice about cars, auto safety, driving, and transportation. Driver's Seat is written by Jonathan Welsh with contributions from auto critic Dan Neil, columnist Joe White and Wall Street Journal staffers and others.