Hankook & Company, the holding company of the Hankook Tire Group, is reportedly considering the acquisition of Lotte Rental, the leading rental car company in South Korea.
According to industry sources on July 27, Hankook Tire has begun internal reviews for the potential acquisition of Lotte Rental, which is currently up for sale.
Internally, the company is assessing the business viability based on the growth potential of the rental car sector and the benefits of expanding its business portfolio.
This is not the first time Hankook Tire has shown interest in the rental car business. In 2015, during the sale of KT Rental, the predecessor of Lotte Rental, the company participated in the bidding process in a consortium with the Japanese financial services group Orix.
Lotte Rental is regarded as a stable cash cow in the domestic rental car market, generating reliable profits. Kiwoom Securities forecasts that Lotte Rental's revenue for the second quarter of this year will reach 771.6 billion won, with an operating profit of 86.5 billion won, marking increases of 3.0% and 12.1%, respectively, compared to the same period last year, aligning with market expectations.
Recently, Hankook & Company has been accelerating its efforts to expand its business portfolio. Following its acquisition of a stake in Hanon Systems last year, which made it the largest shareholder, the company is now exploring opportunities in the rental car sector to broaden its mobility business.
A representative from Hankook & Company stated, "We are seeking various business opportunities, including in the rental sector."
Meanwhile, Lotte Rental announced earlier this month that the U.S.-based private equity firm Texas Pacific Group (TPG) has conducted a solo due diligence. The shares being sold represent 61.18% of Lotte Rental, held by Hotel Lotte and Busan Lotte Hotel, with the acquisition price expected to exceed 1 trillion won.
* This article has been translated by AI.
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