South Korea's SK Innovation and SK E&S Merge to Form Energy Powerhouse
Key Ideas
- SK Innovation and SK E&S are set to merge, creating the largest private energy entity in South Korea with combined assets of 100 trillion won.
- Shareholders' approval is awaited for the merger, with the merged company expected to be officially launched on November 1.
- The merger will result in a comprehensive energy company spanning current and future energy sectors, including hydrogen and renewable energy.
- SK E&S aims for ambitious growth in its LNG and hydrogen business by 2025, targeting significant production and becoming a major global LNG provider.
South Korea's SK Innovation and SK E&S have announced their merger, which will combine their assets to form the largest private energy entity in the country. The merger ratio of the two companies is set at 1 to 1.1917417, pending shareholder approval on August 27. The new entity is expected to be officially launched on November 1, with SK conglomerate's shareholding in SK Innovation increasing significantly. The merged company will operate across the entire energy value chain, including oil, LNG, renewable energy, hydrogen, and more, along with businesses in batteries and ESS. SK E&S, previously spun off from SK Innovation, has ambitious plans for its LNG and hydrogen business by 2025, targeting substantial production volumes and aiming to become a key global LNG provider by 2023 and 2025. The merger signifies a strategic move towards a more comprehensive and diversified energy portfolio, emphasizing sustainable and low-carbon energy solutions.