SK Networks mulls acquiring AJ Rent-a-car
[THE INVESTOR] SK Networks, the nation’s second largest car rental provider, said on Sept. 19 it is considering the acquisition of its smaller rival AJ Rent-a-car, but adding nothing has been decided yet, in response to the Korea Exchange’s inquiry on speculations.
Earlier in the day, local news outlet reported SK is in discussions to buy 45.38 percent stake in AJ Rent-a-Car held by AJ Networks, local construction device and IT equipment rental provider.
If the deal goes through, SK Networks, which has 12.04 percent market share in the local car rental business, will add AJ Rent-a-Car’s 9.84 percent to follow close behind market leader Lotte Rental, which has 24.26 percent share.
AJ has been seeking to exit from the car rental business since last year amid growing competition with the conglomerate-run rental services. Lotte entered the market in 2015 when it bought KT Rental, while SK Network has been expanding at a fast pace as its parent SK Group is beefing up rental and car-sharing businesses.
SK Holdings, the parent firm of SK Group, has 28 percent stake in Korea’s largest car-sharing platform Socar, as well as 20 percent stake in Poolus, local ride-sharing startup. It also recently acquired an undisclosed amount of stake in Grab, Southeast Asia’s largest ride-sharing firm.
By Ahn Sung-mi (firstname.lastname@example.org)