Sweden’s Atlas Copco to Buy Rental Service

Swedish engineering group Atlas Copco said it is buying Rental Service Corp. for $1.63 billion, or $29 a share, in a deal that will make it North America’s No. 2 construction equipment rental company. United Rentals Inc., the biggest U.S. equipment rental company, said it would drop out of the bidding for No. 3 Rental Service, which formally rejected United’s hostile $22.75-a-share offer earlier this month. Atlas Copco, based in Stockholm, said the acquisition would consolidate its position in an industry worth about $20 billion a year in the United States. The business accounts for about 13% of Atlas Copco’s sales. Shares in Scottsdale, Ariz.-based Rental Service gained $4.44 to close at $28.50, and United Rental, based in Greenwich, Conn., rose 94 cents to close at $27.06, both on the New York Stock Exchange.