SK Group completed a strategic merger between its energy units SK Innovation and SK E&S, forming South Korea’s largest private energy conglomerate with assets of 105 trillion won ($76.3 billion).
The consolidation brings together SK Innovation, the parent of oil refiner SK Energy and battery maker SK On, with SK E&S, the country’s leading city gas supplier. The merged entity will operate under SK Innovation, with E&S maintaining operational autonomy as an internal company rebranded as SK Innovation E&S.
The reorganization follows SK On’s recent absorption of SK Trading International and comes as the group grapples with challenging market conditions. SK Innovation’s second-quarter losses narrowed to 45.8 billion won from 106.8 billion won a year earlier, while SK E&S saw its operating profit decline 34% to 192.8 billion won.
The deal marks another step in SK Group’s broader restructuring as it navigates slowing electric vehicle demand and global market volatility. The combined company will oversee operations spanning oil refining, petrochemicals, LNG, batteries and renewable energy.
SK Inc., the group’s holding company, maintains significant control over the merged entity through its 36.2% stake in SK Innovation and previous 90% ownership of SK E&S.
Looking ahead, SK On plans to acquire SK Enterm, a storage and dock facility operator, in February 2025.
