Car hire giant Avis Budget is to buy its European counterpart in a £636m (€720.97m) deal that reunites the two businesses after 25 years.

Car rental group Avis Europe moved to shore up its balance sheet today by announcing plans to raise €183m million from shareholders.

Troubled car rental firm Avis Europe unveiled plans today to raise £110.5m (€166.4m) to help arrest the slump in its profits.