Avis seeks okay to buy Budget NZ

By SIMON HENDERY

The US parent company of rental car firm Avis is seeking Commerce Commission approval to buy the New Zealand business of rival Budget as part of a multi-country takeover.

Budget, the United States' third largest car rental firm, is facing bankruptcy after suffering a downturn in business following last year's terror attacks.

Avis' parent, Cendant Corporation, last month said it had agreed to buy Budget's operations in the US, Canada, Australia, New Zealand and Latin America for US$107.5 million.

The deal will create America's second-largest rental company.

The Commerce Commission said yesterday that it had to determine whether the local merger would substantially lessen competition in any New Zealand market.

In July, Budget Rent a Car's New Zealand managing director, Rob MacGregor, said the parent company's woes had had little effect on the local operation and it was "pretty much business as normal down here".

MacGregor said Budget New Zealand had experienced strong growth since September 11 as overseas tourists flocked to "safe" destinations.

Avis' New Zealand managing director, Kathryn O'Neill, could not be reached for comment.