On July 17, SK Innovation and SK E&S held board meetings and approved proposals for their merger.
The two companies will convene emergency shareholder meetings next month to complete the merger process, and SK Innovation and SK E&S will merge at a 1:1.19 ratio. In addition, the new entity is expected to be formally established as early as November. Upon successful completion, the merged company is anticipated to become South Korea’s largest energy enterprise, with total assets reaching 106 trillion Korean Won ($72.57 billion US).
On the same day, SK On, SK International Trade, and SK Enterm also held board meetings and resolved to merge the three companies. Notably, SK On is a subsidiary of SK Innovation and the world’s fourth-largest battery company.
SK International Trade is South Korea’s sole specialized trading company for crude oil and petroleum products, while SK Enterm is the country’s largest commercial oil depot operator, specializing in the storage and handling of petroleum goods.
In contrast to the above-mentioned enterprises, SK On has been in continuous deficit since its split in 2021, relying on long-term financial support from SK Group’s energy and chemistry business. In Q1 2024, SK On’s losses surged to 331.5 billion Korean Won ($238.9 million US), with its global installed capacity for power batteries decreasing by 8.2% year-on-year, and its market share also declining by 1.5%.
Furthermore, the merger between SK Innovation and SK E&S is also aimed at offsetting the losses incurred by SK On.
Source: WeChat Official Account—电池工业网
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