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3mo ago

SK Innovation to Merge SK On With SK Enmove and Raise 8 Trillion Won

Combining battery operations with lubricant services is aimed at unlocking synergies that will fortify SK Innovation’s finances

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This undated photo, provided by SK Group, shows the headquarters of the chemicals-to-defense conglomerate in central Seoul. (PHOTO NOT FOR SALE) (Yonhap)
SK Innovation Executive President Jang Yong-ho delivers a briefing on the planned merger between SK On and SK Enmove Co., part of the company's reorganization efforts, at SK Group headquarters in central Seoul on July 30, 2025. (Yonhap)
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Overview

  • SK Innovation approved merging its battery unit SK On with lubricant affiliate SK Enmove to form a new electrification entity launching on November 1, 2025.
  • The company plans to raise 8 trillion won this year through rights offerings and bond issuances to shore up its balance sheet.
  • It intends to divest non-core assets to reduce borrowings by more than 1.5 trillion won by the end of 2025.
  • SK Innovation confirmed that an initial public offering of the merged entity is not under consideration and will focus on improving SK On’s profitability.
  • The group is targeting 20 trillion won in EBITDA and net borrowings below 20 trillion won by 2030 to strengthen its financial health.