SK Innovation Company, a subsidiary of the South Korean conglomerate SK Group, has recently announced a significant merger between two of its key subsidiaries, SK On Company and SK Enmove Company. The merger, which is set to officially take place on 1st November, aims to consolidate the operations of the two companies and drive growth in SK Innovation’s electrification business.
SK On Company, a leading EV battery manufacturer in South Korea, has faced challenges due to slower-than-expected growth in global battery electric vehicle (BEV) sales. On the other hand, SK Enmove Company specializes in producing lubricants, immersion cooling solutions, and air conditioning refrigerants for EVs and other applications. By merging these two entities, SK Innovation hopes to enhance competitiveness, accelerate growth, and generate additional revenues through synergies and market expansion.
In addition to the merger, SK Innovation has also approved a resolution for a large-scale capital increase through third-party allotment, aiming to raise a total of KRW 8 trillion (US$ 5.7 billion) in new capital this year. This financial restructuring is part of the company’s strategy to become a leading total energy company with top-tier competitiveness in the future era of electrification. SK Innovation has set a target of KRW 20 trillion in EBITDA by 2030.
Lee Seok-hee, CEO of SK On Company, expressed optimism about the merger, stating, “With the expected synergies from the merger, including the integration of both companies’ technological and business capabilities, we anticipate showcasing a higher level of competitiveness in the global market.”
Overall, the merger between SK On Company and SK Enmove Company represents a strategic move by SK Innovation to strengthen its position in the electrification market and drive future growth. By leveraging the combined expertise and resources of the two companies, SK Innovation aims to emerge as a key player in the evolving landscape of electric vehicles and sustainable energy solutions.
