Lotte Halts Lotte Rental Sale Talks with Affinity... "Aims for Resale Within This Year"

"Final Agreement Could Not Be Reached Between the Two Parties"

Lotte Group announced on May 18 that it will halt discussions with Affinity Equity Partners regarding the sale of its stake in Lotte Rental.

Lotte Group stated that it had been in continuous talks with Affinity Equity Partners after receiving the results of the review from the Fair Trade Commission. However, the two parties were unable to reach a final agreement on various matters related to the transaction, and as a result, Lotte Group determined that it was no longer feasible to pursue the deal.

Lotte Rental is the leading car rental company in South Korea by market share. Last year, it posted sales of 2.9188 trillion won, marking a 4.5% increase from the previous year, while net profit rose by 23.4% to 126.7 billion won. In the first quarter of this year, sales grew by 6.6% year-on-year to a record-high first-quarter revenue of 730.9 billion won, and net profit increased by 1.6% to 30.3 billion won.

Lotte Group plans to continue its efforts to pursue the sale, aiming to complete the process within this year, taking into account overall market conditions and the company’s mid- to long-term growth strategy.

Meanwhile, Lotte Group intends to further strengthen its financial soundness and continue upgrading its business portfolio, leveraging the recent overall improvement in the group’s performance. The group also plans to focus on business structure innovation based on a strategy of selection and concentration.

This content was produced with the assistance of AI translation services.