The Fair Trade Commission has approved the acquisition of shares in Lotte Rental by the U.S.-based private equity firm Texas Pacific Group (TPG).
The commission announced on September 1 that it has granted approval for the acquisition by Lexicon Korea Holdings, a company affiliated with TPG.
TPG has entered the South Korean private equity market and the infant nutrition sector, with its local subsidiary HB F&B operating in the latter. Lotte Rental primarily focuses on the vehicle rental market in South Korea.
In July, Lotte signed a contract with TPG for the sale of management rights in Lotte Rental.
The sale involves the complete transfer of a 61.2% stake in Lotte Rental held by Hotel Lotte and Busan Lotte Hotel, with Hotel Lotte owning 38.1% and Busan Lotte Hotel holding 23.0%. The transaction is valued at 5,900 won per share, totaling 1.31 trillion won.
The Fair Trade Commission determined that the merger would not raise concerns about market competition, considering the business areas of TPG and Lotte Rental. The commission concluded that there is no complementarity or substitutability between the two companies' operations, categorizing the share acquisition as a 'mixed merger.'
A mixed merger refers to a combination of companies that are not in direct competition or do not have supplier-buyer relationships.
The commission announced on September 1 that it has granted approval for the acquisition by Lexicon Korea Holdings, a company affiliated with TPG.
TPG has entered the South Korean private equity market and the infant nutrition sector, with its local subsidiary HB F&B operating in the latter. Lotte Rental primarily focuses on the vehicle rental market in South Korea.
In July, Lotte signed a contract with TPG for the sale of management rights in Lotte Rental.
The sale involves the complete transfer of a 61.2% stake in Lotte Rental held by Hotel Lotte and Busan Lotte Hotel, with Hotel Lotte owning 38.1% and Busan Lotte Hotel holding 23.0%. The transaction is valued at 5,900 won per share, totaling 1.31 trillion won.
The Fair Trade Commission determined that the merger would not raise concerns about market competition, considering the business areas of TPG and Lotte Rental. The commission concluded that there is no complementarity or substitutability between the two companies' operations, categorizing the share acquisition as a 'mixed merger.'
A mixed merger refers to a combination of companies that are not in direct competition or do not have supplier-buyer relationships.
* This article has been translated by AI.
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