Car rental company Avis Budget Group dropped out of the race to buy Dollar Thrifty, after a prolonged bidding battle with rival Hertz Global Holdings Inc.
Avis said it had made significant progress in obtaining regulatory clearance for the Dollar Thrifty acquisition, but had decided not to pursue a transaction due to current market conditions.
Avis and rival Hertz have been chasing Dollar Thrifty for more than a year, amid growing consolidation pressure in the industry, and were in separate talks for antitrust approval.
Dollar Thrifty had set a deadline of October 10 for both the companies to make their final buyout offers, to end the continued uncertainty surrounding the deal.
It also adopted a poison pill to thwart unfriendly takeovers after Hertz raised it buyout offer in May.
Hertz's offer is currently worth about $1.92 billion, based on the stock's last closing price.
However, after Avis acquired its European namesake in June for about $1 billion, Wall Street's expectations of a higher bid from Avis had come down significantly. Avis had not matched Hertz with a counter bid.
Shares of Hertz jumped nearly 9 percent to $10.88 in early morning trading, making them one of the top gainers on the New York Stock Exchange.
Dollar Thrifty shares fell 3 percent to $62.99, while Avis' shares rose 4 percent at $12.21 on Nasdaq.
© 2017 Thomson/Reuters. All rights reserved.