Shareholders approve SK Innovation and SK E&S merger, creating $80 billion energy giant

Industry

Shareholders approve SK Innovation and SK E&S merger, creating $80 billion energy giant

Published: 27 Aug. 2024, 10:45

JIN EUN-SOO
jin.eunsoo@joongang.co.kr

SK Innovation headquarters [NEWS1]

The merger of SK Innovation and SK E&S was approved with a sweeping 85.76 percent consensus at SK Innovation's shareholder meeting on Tuesday.

SK E&S shareholders also approved the merger.

SK Innovation held an extraordinary shareholder meeting on Tuesday to vote on the merger of the two SK energy affiliates, with a merging ratio of 1 to 1.19.

The approval was largely expected, as SK Inc. holds 36.2 percent of SK Innovation, which already fulfills one-third of the votes required to pass the agenda.

The merger is expected to be the largest restructuring at SK Group in two decades. The deal was designed to salvage the money-losing SK On, the EV battery subsidiary of SK Innovation.

SK E&S is a cash cow within SK Group, dedicated to liquefied natural gas and other forms of renewable energy.

The merger is expected to establish an energy giant with an asset value of 106 trillion won ($79.7 billion). The new entity will launch on Nov. 1.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]