27 August 2012 Last updated at 08:23 ET

Hertz and Dollar Thrifty agree $2.3bn takeover deal

Hertz has made a number of bids for Dollar Thrifty in recent years

Car hire company Hertz has agreed a deal to buy rival Dollar Thrifty for $2.3bn (£1.5bn).

The deal marks the end of the long-running takeover battle for one of the largest car rental firms in the US.

The new partners said the deal would lead to "significant growth opportunities" and $160m of cost savings each year.

The deal has been approved unanimously by both boards but is still subject to regulatory approval.

Both Hertz and rival Avis had made bids for Dollar Thrifty in recent years.

"We are pleased to have finally reached an agreement with Dollar Thrifty after a lengthy - but worthwhile - pursuit," said Hertz chief executive Mark Frissora.

"We have always believed that a combination with Dollar Thrifty is the best strategic option for both companies."

Scott Thompson, chief executive of Dollar Thrifty, said: "After three years of merger-related activity and speculation, I am pleased that we have reached a win-win transaction for both Hertz and Dollar Thrifty."

Combined, the two companies recorded sales of $10.2bn in the year to the end of July.

Hertz also announced the sale of its Advantage business to Franchise Services of North America and Macquarie Capital.