World's largest equipment rental company United Rentals Inc will purchase rival RSC Holdings for about $1.9 billion to beef up its industrial business, as it looks to counter a weak commercial construction market.With the deal, the company now expects to reduce its revenue share from the commercial construction market, which is yet to see a recovery as rising unemployment and inadequate finance for non-residential projects have dragged down business spending.After the deal, industrial equipment rentals will form 35 percent of United Rental's revenue, up from the current 16 percent. Commercial construction revenue will fall to about half of its total sales from the present 60 percent level.RSC, which rents out equipment like forklifts, pumps and power distribution systems, is United Rental's second acquisition in the industrial equipment segment this month, following its purchase of Blue Mountain Equipment Rental Corp.
RSC Holdings Inc. (RSC Holdings) is an equipment rental provider in North America. Shares of RRR traded higher by 53.47% or $6.08/share to $17.45. In the past year, the shares have traded as low as $6.26 and as high as $15.04. On average, 1284110 shares of RRR exchange hands on a given day and today's volume is recorded at 29288334.
United Rentals, Inc. (United Rentals) is a holding company. Shares of URI traded higher by 1.96% or $0.51/share to $26.55. In the past year, the shares have traded as low as $12.81 and as high as $34.78. On average, 2395210 shares of URI exchange hands on a given day and today's volume is recorded at 6901203.
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