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Approval of Lotte Rental Co.’s Acquisition of Additional Stake in SoCar

SEOUL, Jan. 31 (Yonhap) — The antitrust regulator announced on Wednesday that it has given the green light to Lotte Rental Co.’s purchase of an additional 19.7 percent stake in the car-sharing startup SoCar.

In a move to expand its presence in the growing car-sharing industry, the South Korean leading car rental agency, which is affiliated with retail giant Lotte Group, initially reported its intention to acquire a 17.91 percent stake in SoCar in September of last year. It then followed up with an additional 1.79 percent stake purchase last month, according to the Fair Trade Commission (FTC).

As of now, Lotte Rental holds a 14.99 percent stake in SoCar, making it the third-largest shareholder. However, with the recent approval, the company is set to become the second-largest shareholder in the mobile platform.

The FTC has stated that it does not anticipate Lotte Rental’s stake purchase to exert “practical influences” on the management of the mobility platform. The regulator has also pointed out that the top shareholder, SOQRI, has been increasing its own stake in SoCar. These factors contributed to the decision to approve Lotte Rental’s acquisition.

Additionally, an FTC official emphasized the need to closely monitor any changes in ownership that could potentially impact fair market competition, particularly in industries such as car rental and car-sharing, which have significant implications for consumers.