This file photo provided by SK Innovation shows its refining plant in Ulsan, 300 kilometers southeast of Seoul. (Image courtesy of Yonhap)
SEOUL, Jun. 20 (Korea Bizwire) — SK Innovation Co., South Korea’s leading refiner, said Thursday various plans, including a merger, have been under consideration to bolster its competitiveness, but no decision has been made.
A company spokesperson at SK Innovation made the remarks after the Chosun Ilbo newspaper reported, citing industry sources, that the company will merge with its gas power generation affiliate, SK E&S Co.
“We are considering various strategic options, including a merger, to strengthen our business. But no decision has been made yet.” the spokesperson said.
SK Innovation and SK E&S posted 77 trillion won (US$55.6 billion) and 11 trillion won in respective sales last year.
Shares of SK Innovation jumped 15.7 percent to 121,200 won at one point in early morning trading.
SK Group, South Korea’s second-biggest conglomerate by assets after Samsung Group, has been in the process of “rebalancing,” or reorganizing, its business portfolios for “optimization,” the spokesperson said.
Any merger plan is subject to approval at the refiner’s board of directors meeting and at an extraordinary shareholders meeting.
SK Group, a chip-to-construction conglomerate, currently has 219 affiliates, up from 198 at the end of last year.
(Yonhap)
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