FTC approves TPG's acquisition of Lotte Rental shares

The Fair Trade Commission (FTC) in South Korea has approved U.S. private equity firm TPG Inc.'s acquisition of a controlling stake in car rental company Lotte Rental Co. The decision was made despite both companies operating in unrelated business areas, and the FTC deemed the deal unlikely to harm competition. Lotte Group announced last month that it had agreed to sell its 61.2% stake in Lotte Rental to TPG.

According to FTC rules, a general merger review is required when independent companies are integrated under common control. Earlier this year, Lotte had attempted to sell Lotte Rental to Affinity Equity Partners, a global private equity firm, but the deal was blocked by the FTC in January. The FTC pointed out that Affinity Equity Partners currently owns SK Rent-a-Car Co., South Korea's second-largest rental car operator, and the acquisition would significantly limit competition in the market.