While Avis will be able to provide service to fleets of all sizes, Budget will focus on individual and leisure rentals, while also targeting local businesses.
Behind the scenes efficiencies through sharing resources such as some call centres will help Avis Europe integrate the two companies effectively and improve market share.
Mark McCafferty, chief executive of Avis Europe, revealed plans for the future of the company at the same time as he announced he was stepping down. He expects to remain with the company until early 2004.
The firm revealed that revenue for the six months to the end of June was 5.5% lower at 527 million euros, including 13 million euros from acquisitions. Pre-tax profits were 14 million euros, down from 51.5 million euros for the same period last year.