Commission clears Avis to acquire Budget

Commission clears Avis to acquire Budget

The Commerce Commission has approved an application from Cendant Corporation, which owns and operates Avis Rent-a-Car Limited, to acquire up to 100% of the shares and assets in Budget Group Inc’s car and truck operations in New Zealand.

Budget is currently in bankruptcy proceedings in the USA. Cendant proposes to acquire Budget’s rental car and truck operations and certain rights that Budget has as the owner of a car rental franchise system in numerous countries, including Australia and New Zealand.

Chair John Belgrave said the Commission is satisfied that the proposed acquisition would not have, nor would be likely to have, the effect of substantially lessening competition in the corporate or leisure car rental markets.

The Commission’s written decision on the application will be available soon on the Commission’s website, http://www.comcom.govt.nz/adjudication.

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