This article was posted on the ChosunBiz MoneyMove (MM) site at 5:56 p.m. on Feb. 23, 2026.
Since the Korea Fair Trade Commission (FTC) denied global private equity firm Affinity Equity Partners' acquisition of Lotte Rental at the end of last month, Lotte Group and Affinity have not taken any significant action even after a month. Insiders say both parties judged that filing an administrative lawsuit with the FTC would be practically burdensome, and they are reportedly seriously considering the option of filing an objection while submitting remedies.
Lotte Group says it will, for now, join with Affinity and knock on the FTC's door again. Industry sources interpret, however, that this is not because Lotte wants to, but because it has no real alternative. They say it would be practically very difficult to find a buyer willing to offer as high a purchase price as Affinity did.
According to investment banking industry sources on the 23rd, Lotte Group is internally reviewing various options on how to respond to the FTC's decision to block Affinity's acquisition of Lotte Rental. Instead of its former law firm BAE, KIM & LEE LLC, the group has appointed Sejong's antitrust group to handle the response.
Earlier, on Jan. 26, the FTC officially announced it would block the merger of Lotte Rental and SK Rent-a-Car. Lotte Rental is the No. 1 player in the domestic rental car market, and SK Rent-a-Car is the No. 2 company, with Affinity as its largest shareholder.
Under the rules on the operation of FTC meetings and case procedures, the resolution must be drafted within 35 days from the day the deliberation ends at a plenary or subcommittee meeting (the decision date). It is then in principle to be delivered to the respondent (the company concerned) within five days.
For major matters such as blocking a merger, the FTC first announces the deliberation results through a press release, but the formal resolution with legal effect must contain extensive analysis and legal grounds. As a result, it often takes about four to six weeks from the press release to actually receive the official resolution. In Lotte Rental's case, the resolution is expected to be delivered by early next month.
Industry observers say it is likely that Lotte and Affinity will file an objection with the FTC. Those who are dissatisfied with the FTC's disposition may file an objection with reasons within 30 days from the date the resolution is delivered.
The two companies are also likely to submit remedies together. According to investment banking and legal sources, the FTC reportedly sought structural remedies from Affinity during this review process. Affinity judged it would be difficult to accept them, and as a result the FTC ultimately blocked the merger. Industry sources speculate the structural remedies the FTC requested likely included the sale of SK Rent-a-Car equity.
Lotte Group is publicly maintaining the position that it will "challenge the merger review again with Affinity." But inside the group, there are reportedly voices that privately say, "We relied on Affinity and now what is this," and hope another buyer will come forward to pursue the acquisition. It is understood that global private equity Texas Pacific Global (TPG) reviewed acquiring Lotte Rental, and at one point the name of Hyundai Motor Group was also mentioned.
But investment bankers say it will not be easy to find a buyer willing to offer as high a price as Affinity. Because Affinity offered such a high price, finding someone to top that price is seen as practically difficult.
Affinity agreed to acquire Lotte Rental shares at 77,000 won per share. From Lotte Group's perspective, that represented a management premium of more than 160% compared with the market price at the time (29,000 won). The current stock price is trading around 33,000 to 34,000 won.