SK Innovation and SK E&S, two holding companies owned by Korean conglomerate SK Group, have reached a merger agreement, forming the largest private energy company in the Asia-Pacific (APAC) region.
The decision was made by SK Group to establish a robust growth foundation for its future energy businesses. The merger is expected to enhance the competitiveness of SK Group’s energy portfolio by integrating SK Innovation’s oil and battery businesses with SK E&S’ liquefied natural gas (LNG) and renewable energy businesses.
The merged company will aim to provide a comprehensive energy solution package tailored to global energy market demands.
The combined entity is set to launch on 1 November 2024. Its assets are expected to be worth 100trn won ($75bn) with revenues of 88trn won.
The agreement was ratified with an 85.75% approval rate from shareholders that attended the extraordinary general meeting. The merger required the consent of at least two-thirds of the attending shareholders as well as one-third of the total issued shares.
According to reports, the National Pension Service (NPS), the second-largest shareholder of SK Innovation, opposed the merger, citing risks to potential shareholder value.
