Markets Wired

Following a public comment period, the Federal Trade Commission has approved an application submitted by Franchise Services of North America, Inc. (FSNA) regarding the sale of 22 former Advantage Rent A Car locations, to Hertz Global Holdings, Inc. (Hertz) and Avis Budget Group (Avis). 

FSNA acquired the locations under a 2012 FTC settlement to resolve charges that Hertz’s proposed $2.3 billion acquisition of Dollar Thrifty Automotive Group, Inc. would have been anticompetitive.  On November 5, 2013, FSNA, through a subsidiary, filed for Chapter 11 bankruptcy protection, and  the Catalyst Group LLC was the winning bidder for the Advantage assets. The bankruptcy court approved Catalyst’s acquisition of Advantage, subject to FTC approval, which the FTC granted on January 30, 2014.

Catalyst bid on 40 of the Advantage locations and excluded the remaining 28 locations from its purchase. The bankruptcy court has now approved a request by FSNA to sell 22 of these locations — 10 to Hertz and 12 to Avis.  

The Commission vote to approve the application was 3-0-2, with Commissioners Joshua D. Wright and Terrell McSweeny not participating. No comments were received during the public comment period. Copies of the application can be found on the FTC’s website and as a link to this press release. (FTC File No. 131-0163, Docket No. C-4376; the staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 601 New Jersey Ave., N.W., Room 7117, Washington, DC 20001. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.