Hertz eyes China expansion with investment deal
Car hire firm Hertz has agreed a deal to pick up a 20% stake in China Auto Rental (CAR), as it looks to expand its presence in China.
Under the pact, CAR will get a licence to operate on behalf of Hertz in China for an initial term of five years.
Faced with a slowing demand in Western economies, foreign firms have been keen to expand in China to tap into its fast-growing domestic market.
CAR is China's largest car rental firm and has seen rapid growth.
Since its inception in 2007, the firm has expanded its presence in the country and now operates in 66 cities, serving more than one million customers and approximately 10,000 corporate clients.
It saw its revenues double in 2012 to $250m (£160m).
Mark Frissora, chief executive of Hertz, said that given CAR's dominance in the Chinese market, it provided a great platform for Hertz to boost its presence in the world's second-largest economy.
"As the leading global car rental brand, it's a perfect fit for Hertz to partner with the largest and most recognised car rental company in China," he said.
"Hertz is now uniquely positioned among American and European car rental brands to support the rapidly expanding Chinese rental market, as well as CAR's growth."
The firms did not disclose the financial details of the deal.