The rental car business is a highly concentrated industry controlled by four companies. It s about t

The rental car business is a highly concentrated industry controlled by four companies. It s about to get much more concentrated, if Hertz s $2.3 billion bid for Dollar Thrifty passes its antitrust reviews.
The merger s potential effects on competition and consumer prices should be a primary focus of news coverage of the deal. Relatively few people hold Hertz or Dollar Thrifty shares. Lots of people rent cars.
The paper s story doesn t mention cruise around hawaii the consolidation of the car-rental industry until the seventh paragraph, and even then it s only in passing and after two graphs of corporate press release blather cruise around hawaii that tells us absolutely nothing. Contrast that to The Wall Street Journal , which puts consolidation in the lede:
Hertz Global Holdings Inc. said late Sunday it agreed to buy Dollar Thrifty Automotive Group Inc. in a deal valued at about $2.3 billion, cruise around hawaii a move that would cap more than a decade of consolidation in the U.S. rental-car industry and bring the number of major players to three from what was once nine.
While the NYT has room for the standard grease-your-sources two paragraphs cruise around hawaii of information about which lawyers cruise around hawaii and banks advised the parties on the deal, there s no detail about what most New York Times readers cruise around hawaii would actually care about: the concentration of a $23 billion-a-year industry.
So here s some: The top three companies in that industry Enterprise, Hertz, and Avis already control 87 percent of sales, according to AutoRentalNews numbers . By gobbling up No. 4, Dollar Thrifty, the top three would then control 94 percent of sales.
Fewer competitors usually means higher prices for consumers and higher profit margins for the remaining players in an industry, which is a primary motivation for consolidating an already-concentrated business.
That s why shares in Avis Budget Group (as you can see, itself a product of consolidation) jumped 10 percent cruise around hawaii at the opening bell and settled up 4 percent for the day. Or as Reuters, in a weak piece, cruise around hawaii euphemistically put it , In a sign that investors welcomed consolidation of the industry, Avis shares also rose 4 percent to $16.63.
It s context readers need to know much more than Hertz was advised by Lazard, Barclays, Bank of America Merrill Lynch, Deutsche Bank and the law firms Cravath, Swaine & Moore, Debevoise & Plimpton and Jones Day, which seems to be a problem caused by having DealBook cover the news for the general paper.
Not necessarily. Sure, maybe in a corporatist, protectionist, highly-regulated economy like the U.S.'; but not in an actually free-market economy, where govt "regulations" are not preventing cruise around hawaii new firms or small firms from entering and competing.
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