Pershing Square Capital Management, an American investment company controlled by billionaire investor Bill Ackman, has increased its stake in car rental company Hertz Global Holdings Inc. to 19.8% of shares. This is reported in a press release from Pershing.
The deal aims to boost Pershing's profitability over several years and return on investment as part of the car rental company's business restructuring by increasing the value of Hertz shares to $30 by 2029.
Pershing Square began buying up Hertz shares at the end of 2024, betting that Hertz would be able to capitalize on the potential increase in used car prices caused by President Donald Trump's imposition of tariffs on U.S. car imports.
Hertz owns a fleet of more than 500,000 vehicles with a total value of $12 billion. A 10% increase in used car prices would increase the value of automotive assets by $1.2 billion, equivalent to half of the company's current market capitalization.
In addition, B. Ekman offered investors the opportunity of a partnership between Hertz and Uber, using Hertz's extensive fleet and infrastructure to increase vehicle utilization and profitability.
Hertz is an American multinational car rental company. The company has 10,000 rental locations in 150 countries and operates the Hertz, Dollar Rent A Car, Firefly Car Rental and Thrifty Car Rental brands. The headquarters is located in Estero, Florida. The company operates the Hertz brand of the same name, as well as the Dollar Rent A Car brands.
Pershing Square Holdings is an American investment company focused on long—term capital growth. The main offers include the acquisition of significant positions in various sectors, including healthcare, industry, consumer goods, real estate, financial services, etc. The headquarters is located in the island of Guernsey (UK).
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