Shareholders approve United Rentals' acquisition of RSC
By Lindsey Anderson27 April 2012
Shareholders at both United Rentals Inc. and RSC Holdings Inc. have voted in favor of United's forthcoming acquisition of RSC.
United said 83 percent of its shareholders voted in favor of the merger and RSC said 84 percent of its shares voted in agreement.
The deal is supposed to be finalized on Monday.
The acquisition will create a company with combined revenues of $3.9 billion, more than treble the size of its two closest rivals, Sunbelt Rentals and Hertz Equipment Rental Co (HERC).
The new United Rentals will have an total fleet value of around $7 billion (at original cost) and an estimated North American market share of 12-13 percent, combining United's 8 to 9 percent share with RSC's 4 to 4.5 percent.
The combined networks will number almost 1,000 locations, although United said in a conference call to investors in late December 2011 that between 5 percent and 10 percent of the total - 50 to 100 locations - will close as a consequence of the acquisition.
RSC trading shares rose 3.4 percent to $24.08 on Friday afternoon while United shares added 6.1 percent to $47.76.