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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Lotte Group and private equity firm Affinity Equity Partners have scrapped their planned sale of a controlling stake in Lotte Rental after failing to reach a final agreement following regulatory hurdles.
Lotte Group said on May 18 that despite continued discussions after receiving the review outcome from the Fair Trade Commission, the two sides were unable to agree on key transaction terms, making it difficult to proceed with the deal.
Affinity had previously agreed to acquire a 56.2% stake in Lotte Rental from Lotte Group for KRW 1.5728 trillion in March last year, following its earlier acquisition of SK Rent-a-Car in August 2024. The firm subsequently filed for merger approval with the Fair Trade Commission.
However, in January this year, the regulator rejected the transaction, citing concerns that the combined entity would significantly restrict market competition and likely lead to higher rental prices.
Lotte Rental is the market leader in South Korea’s car rental industry, reporting revenue of KRW 2.9188 trillion last year, up 4.5% year-on-year, and net profit of KRW 126.7 billion, a 23.4% increase.
The failed transaction comes as Lotte Group continues efforts to streamline its portfolio and restructure its governance, including the divestment of non-core assets such as Lotte Rental.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
