Avis Budget buys Avis Europe for $1.0 billion
Car rental group Avis Budget has agreed to buy out rival Avis Europe for £636 million ($1.0 billion, 721 million euros), the pair announced on Tuesday.
"The boards of directors of Avis Budget and Avis Europe are pleased to announce today that they have reached agreement on the terms of a recommended cash acquisition of the entire issued and to be issued share capital of Avis Europe by Avis Budget," a statement said.
"The consideration of 315 pence in cash for each Avis Europe share values the entire issued and to be issued share capital of Avis Europe at approximately £636 million."
The bid offer represents a premium of about 60 percent more than the closing share price on Monday.
Avis Europe had separated from Avis Budget in 1986 but continued to use the Avis Budget brand under exclusive license in certain countries.
"The proposed transaction will re-unify the world-class Avis and Budget brands globally under one corporate umbrella, allowing the combined entity to seamlessly serve leisure and business travellers around the world," added the joint statement.
© 2011 AFP