SK E&C to acquire waste management firm EMC Holdings

SK Engineering & Construction CEO Ahn Jae-hyun [SK ENGINEERING & CONSTRUCTION]

SK Engineering & Construction (SK E&C) said Tuesday it signed an agreement to acquire EMC Holdings, a major local waste management company, for 1 trillion won ($843 million).

SK E&C said the deal, which is part of its efforts to foster environmentally friendly businesses, involves a stock purchase agreement (SPA) with private equity fund Affirma Capital, taking over a hundred percent of its shares of EMC Holdings.

EMC Holdings manages sewage and wastewater treatment as well as waste disposal. The company runs 970 sewage and wastewater treatment facilities, four waste disposal facilities and one landfill. It is the biggest water treatment facility in Korea in terms of market share.

The construction arm of SK is planning to adopt recycling and reusable technology from EMC Holdings’ businesses. The company is also carrying out projects for developing eco-friendly infrastructure based on advanced technology as well as cultivating new energy.

The acquisition is part of a company restructure for its new eco-friendly initiative that is based on digital technology. The conglomerate’s construction arm is also seeking opportunities to expand into the global market.

SK E&C says it is planning to take advantage of EMC Holdings' regional offices across the country and collaborate with small- and medium-sized business partners to give back to society through financial and technical education.

“SK E&C has officially embarked on an eco-friendly business by acquiring the largest environment platform, EMC Holdings, and securing drivers of future growth,” said SK E&C CEO Ahn Jae-hyun in a statement. “Going forward, SK E&C will grow as an eco-friendly corporation that contributes to the modernization of the local environmental industry and the fight against climate change.”

BY LEE JEE-YOUNG [lee.jeeyoung1@joongang.co.kr]