Key Takeaways
- • South Korea's Fair Trade Commission (FTC) approved TPG's acquisition of a 61.2% controlling stake in Lotte Rental for 1.31 trillion won ($925 million) on September 1, 2026, ending Lotte Group's 11-year ownership of the nation's largest car rental operator.
- • The FTC determined the deal posed no competition restriction because TPG's business areas (private equity investment and infant nutritional food products) have no complementarity or substitutability with Lotte Rental's car rental operations.
- • The transaction was first announced on August 11, 2025, and required FTC approval under South Korea's Fair Trade Act before closing, which occurred approximately 14 business days after regulatory clearance.
- • TPG acquired the 61.2% stake from Hotel Lotte (38.1%) and Busan Lotte Hotel (23.0%), marking a significant foreign private equity entry into South Korea's automotive rental sector.
Summary
South Korea's Fair Trade Commission approved Texas Pacific Group (TPG), a US-based private equity firm, to acquire a controlling 61.2% stake in Lotte Rental Co., the country's largest car rental operator, for 1.31 trillion won (approximately $925 million). The regulatory clearance, announced on September 1, 2026, concluded the FTC's mandatory business combination review under South Korea's Fair Trade Act and enabled transaction closure.
The acquisition represents a significant strategic exit for Lotte Group after 11 years of ownership. The divestiture targets the entire management stakes held by Hotel Lotte (38.1%) and Busan Lotte Hotel (23.0%), with the transaction first agreed upon on August 11, 2025. Under regulatory requirements, any acquisition forming a controlling relationship between previously independent companies must undergo FTC review to assess competitive impact.
The FTC's approval hinged on its finding that no competitive restrictions would arise from the combination. The regulatory body determined that TPG's primary business areas—domestic private equity investment and infant nutritional food products—bear no complementarity or substitutability to Lotte Rental's car rental operations. The absence of overlapping market activities or competitive overlap satisfied the statutory exemption from general business combination review, despite TPG's acquisition of a controlling stake.
The transaction closes approximately 14 business days following FTC clearance. This acquisition expands TPG's presence in South Korea's service sector and demonstrates continued foreign private equity interest in Korean market assets, particularly in established operational platforms like car rental infrastructure.
The acquisition represents a significant strategic exit for Lotte Group after 11 years of ownership. The divestiture targets the entire management stakes held by Hotel Lotte (38.1%) and Busan Lotte Hotel (23.0%), with the transaction first agreed upon on August 11, 2025. Under regulatory requirements, any acquisition forming a controlling relationship between previously independent companies must undergo FTC review to assess competitive impact.
The FTC's approval hinged on its finding that no competitive restrictions would arise from the combination. The regulatory body determined that TPG's primary business areas—domestic private equity investment and infant nutritional food products—bear no complementarity or substitutability to Lotte Rental's car rental operations. The absence of overlapping market activities or competitive overlap satisfied the statutory exemption from general business combination review, despite TPG's acquisition of a controlling stake.
The transaction closes approximately 14 business days following FTC clearance. This acquisition expands TPG's presence in South Korea's service sector and demonstrates continued foreign private equity interest in Korean market assets, particularly in established operational platforms like car rental infrastructure.
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