NEW YORK (TheStreet) -- Shares of Hertz Global Holdings (HTZ) are decreasing 0.89% to $18.96 after the company said today that it was negotiating with the Loxam Group to sell its France and Spain businesses of Hertz Equipment Rental Corporation (HERC) to Loxam.
Hertz is engaged in the car and equipment rental businesses worldwide. Loxam is a leading equipment rental company in Europe.
The proposed transaction includes 60 locations in France and two in Spain, Hertz stated. The two companies are each consulting with their respective Works Councils in France.
"The potential divestiture of its France and Spain businesses would enable HERC to focus on core and specialty market expansion," according to the companies' statement.
For Loxam, the potential acquisition would increase its market share in the Paris area and the North and West of France as well as reinforce its Spanish network.
Separately, TheStreet Ratings team rates HERTZ GLOBAL HOLDINGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERTZ GLOBAL HOLDINGS INC (HTZ) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."