According to a South Korean newspaper report on Thursday, SK Innovation, the parent company of South Korea's largest oil refiner and battery maker SK On, is anticipated to pursue a merger with its energy affiliate SK E&amp;S. This merger is expected to result in the formation of a company with assets valued at a staggering 106 trillion won (USD 76.81 billion). The news of this potential merger led to a surge in SK Innovation's share prices, with an increase of more than 10 per cent on Thursday morning.

The report, citing unnamed industry sources, suggests that the merger is partly aimed at bolstering the struggling battery maker SK On by combining it with a profitable company that has a stronger financial position. SK On has been facing losses, and the merger with SK E&amp;S, which reportedly has a more robust balance sheet, could provide a lifeline for the battery maker.

The merger decision is expected to be made by company executives in late June, subject to shareholder approval. This move aligns with SK Group's broader strategy of streamlining its operations and reducing the number of its 219 affiliates. The conglomerate is also re-evaluating new investments, focusing primarily on artificial intelligence and chips, according to the Chosun Ilbo newspaper report.

While SK Inc, the holding company of SK Group, has not confirmed or denied the merger news, SK Innovation declined to comment on the matter. A spokesperson for SK E&amp;S did not immediately respond to a request for comment. 
The South Korean stock market reached a significant milestone on Thursday, with the KOSPI index climbing to 2,798.80, its highest level since January 2022, a remarkable 29-month peak. This achievement was largely driven by a remarkable surge in SK Innovation's shares, which soared by an impressive 16% amid discussions of a potential merger with SK E&amp;S.

The KOSPI index edged up by a modest 1.47 points (0.05 per cent), but this incremental gain was substantial enough to propel the index to heights not witnessed in over two years. SK Innovation's rally was fueled by reports of a potential merger aimed at starting&nbsp;its struggling battery unit. While SK Innovation acknowledged that it is actively exploring strategic options, including the merger under consideration, no concrete decisions have been finalized regarding this matter.

Interestingly, the euphoria surrounding SK Innovation's potential merger was counterbalanced by profit-taking activities in other sectors. Automakers, biopharmaceutical companies, and e-commerce giants experienced declines as investors sought to capitalise on their gains.

Despite these mixed market dynamics, foreign investors remained optimistic about the South Korean market, collectively purchasing shares worth a substantial 201.2 billion won (approximately USD 145.4 million), underscoring their confidence in the nation's economic prospects.

According to a South Korean newspaper report on Thursday, SK Innovation, the parent company of South Korea's largest oil refiner and battery maker SK On, is anticipated to pursue a merger with its energy affiliate SK E&S.

According to a South Korean newspaper report on Thursday, SK Innovation, the parent company of South Korea's largest oil refiner and battery maker SK On, is anticipated to pursue a merger with its energy affiliate SK E&S. This merger is expected to result in the formation of a company with assets valued at a staggering 106 trillion won (USD 76.81 billion). The news of this potential merger led to a surge in SK Innovation's share prices, with an increase of more than 10 per cent on Thursday morning. The report, citing unnamed industry sources, suggests that the merger is partly aimed at bolstering the struggling battery maker SK On by combining it with a profitable company that has a stronger financial position. SK On has been facing losses, and the merger with SK E&S, which reportedly has a more robust balance sheet, could provide a lifeline for the battery maker. The merger decision is expected to be made by company executives in late June, subject to shareholder approval. This move aligns with SK Group's broader strategy of streamlining its operations and reducing the number of its 219 affiliates. The conglomerate is also re-evaluating new investments, focusing primarily on artificial intelligence and chips, according to the Chosun Ilbo newspaper report. While SK Inc, the holding company of SK Group, has not confirmed or denied the merger news, SK Innovation declined to comment on the matter. A spokesperson for SK E&S did not immediately respond to a request for comment. The South Korean stock market reached a significant milestone on Thursday, with the KOSPI index climbing to 2,798.80, its highest level since January 2022, a remarkable 29-month peak. This achievement was largely driven by a remarkable surge in SK Innovation's shares, which soared by an impressive 16% amid discussions of a potential merger with SK E&S. The KOSPI index edged up by a modest 1.47 points (0.05 per cent), but this incremental gain was substantial enough to propel the index to heights not witnessed in over two years. SK Innovation's rally was fueled by reports of a potential merger aimed at starting its struggling battery unit. While SK Innovation acknowledged that it is actively exploring strategic options, including the merger under consideration, no concrete decisions have been finalized regarding this matter. Interestingly, the euphoria surrounding SK Innovation's potential merger was counterbalanced by profit-taking activities in other sectors. Automakers, biopharmaceutical companies, and e-commerce giants experienced declines as investors sought to capitalise on their gains. Despite these mixed market dynamics, foreign investors remained optimistic about the South Korean market, collectively purchasing shares worth a substantial 201.2 billion won (approximately USD 145.4 million), underscoring their confidence in the nation's economic prospects.

South Korea's SK Innovation and SK E&S to go ahead with merger

South Korean battery maker <a href="https://www.wionews.com/business-economy/feuding-korean-firms-risk-disrupting-electric-car-battery-supplies-264839">SK Innovation&nbsp;</a>on Monday said it would supply battery cells to a Chinese-made plug-in hybrid vehicle model that has been recommended for subsidies from Beijing.

The Mercedes Benz plug-in hybrid sedan to be built by Daimler AG's&nbsp;local joint venture with <a href="https://www.wionews.com/world/hyundai-motor-replaces-china-chief-after-supply-disruption-diplomatic-tensions-19837/amp">BAIC Group</a> is listed among new energy vehicles recommended to receive subsidies published by China's industry ministry last Friday.

A spokeswoman for SK Innovation said, "it is the first time since 2016 that we are receiving subsidies from the Chinese government."

SK Innovation's battery plant, a joint venture with BAIC in China's eastern city of Changzhou set up to supply BAIC's premium electric brand ARCFOX, recently started production, the Chinese company said.

China scrapped its list of recommended battery suppliers in June, a decision foreign companies said could open up the world's biggest market for electric vehicle batteries.

In 2015, China published a government list of recommended battery suppliers which excluded foreign firms, effectively locking out the world's biggest market for electric vehicle batteries.

<a href="https://www.wionews.com/business-economy/tesla-unveils-first-ever-electric-pickup-truck-263785">Tesla Inc&nbsp;</a>said on Friday its Chinese-built Model 3 model, being built at its $2 billion factory in Shanghai, would receive state subsidies.

South Korean media citing industry sources reported on Monday that the Model 3 would use batteries made by LG Chem. LG Chem declined to comment.

Reuters reported in August that Tesla was in advanced talks with LG Chem to source batteries for vehicles to be made in its Shanghai plant.

South Korean battery maker SK Innovation on Monday said it would supply battery cells to a Chinese-made plug-in hybrid vehicle model that has been recommended for subsidies from Beijing.

South Korean battery maker SK Innovation on Monday said it would supply battery cells to a Chinese-made plug-in hybrid vehicle model that has been recommended for subsidies from Beijing. The Mercedes Benz plug-in hybrid sedan to be built by Daimler AG's local joint venture with BAIC Group is listed among new energy vehicles recommended to receive subsidies published by China's industry ministry last Friday. A spokeswoman for SK Innovation said, "it is the first time since 2016 that we are receiving subsidies from the Chinese government." SK Innovation's battery plant, a joint venture with BAIC in China's eastern city of Changzhou set up to supply BAIC's premium electric brand ARCFOX, recently started production, the Chinese company said. China scrapped its list of recommended battery suppliers in June, a decision foreign companies said could open up the world's biggest market for electric vehicle batteries. In 2015, China published a government list of recommended battery suppliers which excluded foreign firms, effectively locking out the world's biggest market for electric vehicle batteries. Tesla Inc said on Friday its Chinese-built Model 3 model, being built at its $2 billion factory in Shanghai, would receive state subsidies. South Korean media citing industry sources reported on Monday that the Model 3 would use batteries made by LG Chem. LG Chem declined to comment. Reuters reported in August that Tesla was in advanced talks with LG Chem to source batteries for vehicles to be made in its Shanghai plant.

SK Innovation to supply batteries for Mercedes hybrid car in China

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South Korea's SK Innovation and SK E&S to go ahead with merger

SK Innovation to supply batteries for Mercedes hybrid car in China