Localiza and Unidas Announce Merger Agreement

On September 22, the two largest Brazilian automobile leasing and rent-a-car companies - Localiza and Unidas – announced an agreement with the intention of merging their businesses. The merger could potentially create the largest car rental company in the world, with an estimated market value of R$50 billion.

With the merger announcement, Localiza’s stock rose by 13,97%, whist Unidas’ shot up 17,27%.  However, the potential deal must be approved by Brazil's Administrative Council for Economic Defense (CADE), a major obstacle for the merger alongside obtaining the approval of both companies’ shareholders. 

“With the merger of our complementary businesses, we foresee the creation of a worldwide corporate reference in mobility via the offering of rent-a-car services, corporate fleet management and car rental subscriptions.”, stated Eugênio Mattar, the CEO of Localiza.