FTC approves TPG's acquisition of Lotte Rental shares

Korea's fair trade watchdog on Tuesday approved U.S. private equity firm TPG's acquisition of a controlling stake in Lotte Rental, a local car rental firm.

The Fair Trade Commission (FTC) said the decision came as TPG and Lotte Rental operate in unrelated business areas and the deal is unlikely to hurt competition.

Last month, Lotte said it had agreed to sell its 61.2 percent stake in Lotte Rental to TPG.

Under the rules, the FTC is required to conduct a general merger review when independent companies are integrated under common control.

Lotte had previously sought to sell Lotte Rental to global private equity firm Affinity Equity Partners last year, but the deal fell through after the FTC blocked the acquisition in January.

The FTC noted that Affinity Equity Partners already owns SK Rent-a-Car, the nation's second-largest rental car operator, and that the deal would significantly restrict competition in the market.

Yonhap