SK Innovation announced Wednesday that it will merge its electric vehicle (EV) battery production unit SK On with its lubricant subsidiary SK Enmove, aiming to strengthen its financial position and global competitiveness. The merger was approved by both companies’ boards and is set to take effect by November 1. SK Innovation, the intermediate holding company overseeing the group’s energy and petrochemical businesses, said the move will generate synergy and streamline operations. One of the key drivers of the merger is the growing demand from SK On’s clients for SK Enmove’s immersion cooling technology, used to improve battery performance and safety. SK Innovation emphasized that the integration will help SK On enhance its profitability amid rising market pressures. The decision follows SK Enmove’s failed IPO attempt in June, which was canceled after regulatory concerns about large conglomerates using carve-out listings to raise funds. That failure prompted SK Innovation to reconsider its strategy and fully consolidate the lubricant business under SK On. “The merger is expected to deliver significant synergies and will allow us to show an even higher level of competitiveness in the global market,” said SK On CEO Lee Seok-hee. SK Innovation also confirmed that there are no current plans to list the newly combined entity. However, it announced it will raise ₩8 trillion (around $5.8 billion) this year through capital increases, aiming for ₩20 trillion in EBITDA by 2030. This move is part of a broader corporate restructuring campaign started by SK Group last year. In November 2024, SK Innovation merged with SK E&S, and more recently, SK On absorbed SK Trading International and SK Enterm, signaling an aggressive push to consolidate and scale operations in the energy and mobility sectors.   (ICE SEOUL)

Fonte notizia: The Korea Times