FSNA acquired the Advantage locations from Hertz Global Holdings, Inc. under a 2012 FTC settlement that required Hertz to sell its Advantage rental car business and other assets to a Commission-approved buyer to resolve charges that its proposed $2.3 billion acquisition of Dollar Thrifty Automotive Group, Inc. would have been anticompetitive. Under the terms of the FTC order, for a period of three years following the entry of the order, any sale of divested assets by FSNA requires Commission approval.
On November 5, 2013, FSNA, through a subsidiary, filed for Chapter 11 bankruptcy protection, and sought to sell Advantage, which continued to operate during the proceedings. Following a bankruptcy auction held in December 2013, the bankruptcy court approved Catalyst’s acquisition of Advantage, subject to FTC approval, obtained on January 30, 2014.
Catalyst ultimately decided to operate at 40 of the Advantage locations, and it purchased these assets from FSNA on April 30, 2014. FSNA then ceased operations at the remaining 28 locations and sold the majority of them after obtaining FTC approval. In this petition, FSNA is seeking FTC approval to sell two of the non-transferred locations.
The Commission will decide whether to approve the sales after expiration of a 30-day public comment period. Public comments may be submitted until August 12, 2014. Written comments should be sent to: FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. Comments can also be submitted electronically.
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)