The Commerce Commission has received a clearance application from Cendant Corporation, which owns and operates the New Zealand motor vehicle rental business, Avis Rent-a-Car Limited, to acquire up to 100% of the shares and assets in Budget Group Inc's car and truck operations in New Zealand.

Budget is currently in bankruptcy proceedings in the USA. Cendant proposes to acquire Budget's rental car and truck operations and certain rights that Budget has as the owner of a car rental franchise system in numerous countries, including Australia and New Zealand.

Cendant has four subsidiaries in New Zealand: Avis Rent a Car Limited; Hotel Dynamics International Limited; RCI Pacific (NZ) Pty Ltd; and Southern Cross Distribution Systems (NZ) Limited.

In considering the application under the Commerce Act, the Commission's role is to determine whether the merger has the effect of substantially lessening competition in any market.

A public version of the application is available on request from the Commerce Commission. Please contact Catherine Best, (04) 924 3654.

Media contact: Richard Braae, Manager, Market Structure - Phone (04) 924 3650

Jackie Maitland, Communications Manager - Phone (04) 924 3708

Commission media releases can be viewed on its web site www.comcom.govt.nz