TPG has agreed to buy Hotel Lotte and Busan Lotte Hotel's combined controlling stake in Lotte Rental for 1.31 trillion won, or about $938 million, giving the U.S. private equity firm control of South Korea's largest car-rental company. Lotte Group said it signed a definitive agreement to sell the entire 61.2% stake held by the two hotel units, including 38.1% from Hotel Lotte and 23.0% from Busan Lotte Hotel, at 59,000 won per share. The transaction is subject to Fair Trade Commission approval. Lotte said the proceeds will first be used to improve the financial soundness of Hotel Lotte and Busan Lotte Hotel and then to fund investment in expanding its core hotel business, with a focus on profitability and operational efficiency. The deal comes after Lotte ended earlier talks with Affinity in May and selected TPG after weighing corporate value, deal structure, job security, financing capacity and the likelihood of closing. TPG said it plans to use experience from investments in mobility companies such as Uber to strengthen Lotte Rental's domestic position and raise its corporate value. The sale fits Lotte's broader push to streamline non-core businesses and assets while reinforcing core operations. Chairman Dong-bin Shin last month urged affiliates to secure fundamental competitiveness and improve profitability by reshaping businesses that do not fit the group's strategic direction. Lotte said that effort has already included the sale of Lotte Ecowell in May, while profitability at Lotte Shopping and Hotel Lotte has improved on higher foreign tourist traffic and Lotte Chemical has returned to profit after production and operational optimization.