The purchase of Avis Budget Group Inc of Zipcar Inc was successfully concluded. Avis Budget has fruitfully completed the requirements needed to comply with the U.S. Hart - Scott - Rodino Antitrust Improvements Act of 1976 last 11th February of this year. The deal earlier finalized receives consent from the regulatory bodies in the United States and in the United Kingdom. Last week, it received approval from the United Kingdom Office of Fair Trading's. Zipcar was bought by Avis last January 2013 at the cost of $500 million.
The acquisition was a calculated move by Avis to facilitate the plan to broaden its services from car rental to car sharing. It will enable them to vie with rivals Hertz Global Holdings and United Rentals Inc. The merger is projected to make a yearly earnings between $50 and $70 million. Avis believes that the deal will lead to reduction of company costs through efficient use of vehicles to result in higher income. At present, car sharing is a profitable trade that is valued at about $400 million, just in the U.S. alone, while it is beginning to grow in other parts of the world.
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