Car hire firm Hertz has agreed a deal to buy a 20 percent stake in China Auto Rental, as it looks to expand its presence in China.
As part of the partnership announced on Tuesday, CAR will get a licence to operate on behalf of Hertz in China for an initial term of five years.
China Auto Rental is China's largest car rental firm.
"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," said Mark Frissora, chief executive of Hertz. "China Auto Rental has the largest domestic rental footprint, with 700 locations in 66 cities, and a 50,000-vehicle fleet which is more than four times the size of its nearest competitor. Also, China Auto Rentalis growing rapidly, having doubled its revenues in 2012 to $250 million, 2.5 times larger than any other domestic company.
"Hertz is now uniquely positioned among American and European car rental brands to support the rapidly expanding Chinese rental market, as well as China Auto Rental's growth," he added.
The partnership "fulfils Hertz's objective to significantly increase its presence in the rapidly expanding car rental market in China," a statement
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