SAO PAULO, Sept. 23 (Xinhua) -- Brazil's two leading car rental companies, Localiza and Unidas, on Wednesday announced their decision to merge to create the largest company of its kind in many South American countries.
The CEO of Localiza, Eugenio Mattar, explained in a videoconference that the merger will be made by incorporating shares of Unidas into his company.
"The merger is still awaiting authorization from the Brazilian regulatory authority," he said, referring to the government's Administrative Council for Economic Defense.
"This union represents the meeting between a leading car rental company such as Localiza and a leading fleet management company," said Mattar, noting that as of July the car rental market resumed activity at 2019 levels amid the novel coronavirus pandemic.
The merger will create a large Brazilian car rental company with a market value of 48 billion reals (about 8.6 billion U.S. dollars).
"We want to be a global point of reference in mobility solutions," said Luis Porto, CEO of Unidas.
The new group will have a fleet of about 470,000 vehicles and a presence in such South American countries as Argentina, Chile, Ecuador, Colombia, Uruguay and Paraguay, as well as Brazil.
Localiza will be the majority shareholder of the new company, with 76.8 percent of the shares.