South Korea's SK Innovation and SK E&S to pursue merger, newspaper says (updated)

SK

20/06/2024 01:11

(Adds share rise, paragraph 2)
       SEOUL, June 20 (Reuters) - South Korea's SK Innovation
 096770.KS , parent of the country's largest oil refiner and
battery maker SK On, is expected to pursue a merger with energy
affiliate SK E&S, resulting in a 106 trillion won ($76.81
billion) asset company, a South Korean newspaper reported on
Thursday. 
    Shares in SK Innovation rose more than 10% on Thursday
morning.
    The merger, which company executives are expected to decide
on in late June pending shareholder approval, is partly to shore
up loss-making battery maker SK On by combining with a
profitable company that has a stronger balance sheet, newspaper
Chosun Ilbo reported, citing unnamed industry sources. 
    The move comes as SK Group, South Korea's second-largest
conglomerate by assets after Samsung, is considering reducing
the number of its 219 affiliates and rethinking new investments
except in artificial intelligence and chips, Chosun added. 
    SK Inc  034730.KS , SK Group's holding company, said nothing
has been decided on the matter at the moment. SK Innovation
declined comment. A spokesperson for SK E&S did not respond
immediately to a request for comment.
($1 = 1,380.1000 won)

 (Reporting by Joyce Lee and Heekyong Yang; Additional reporting
by Jihoon Lee; Editing by Jamie Freed)
 ((joyce.lee@tr.com;))