Hertz Global Holdings has announced that it has been given permission in Canada to proceed with the Dollar Thrifty bid.

Canadian antitrust approval was been granted for the buyout, though Hertz did not say if they would be improving on the higher bid from rival Avis, stating only that the plan was going ahead with completion anticipated in the short, rather than long-term.

The Avis Budget Group last week claimed that it had bettered the original USD$1.2 billion offer from Hertz, although the deal is thought to be below the present market price at Dollar after shares have surged since speculation began. In May, both bidders launched their respective antitrust approval requests, with US authorities now asking for second requests.

Canada is also expected to grant Avis similar antitrust approval, but the real challenge remains with the US Federal Trade Commission’s (FTC) lingering analysis of the case, which may see both parties ultimately unsuccessful despite offering widespread business divestment. To pacify the authorities, Avis offered up to USD$325 million in cash revenue while Hertz agreed a $175 million divesting plan of its Advantage brand.

With the Canadian operation relatively small compared to its southern neighbour, the approval there should not be taken as an indication that further permissions may be ahead, with the US examining a wider range of factors. Hertz told news sources last week that they had been advised their US offer was still being discussed, with no updates recently. Shares in all three rental operators rose by 2 per cent on the announcement.