SKorea's SK Innovation and SK E&S to pursue merger

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Shares in SK Innovation rose more than 10 percent on Thursday morning.

SEOUL ― South Korea's SK Innovation, 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 asset company, a South Korean newspaper reported on Thursday.

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.

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