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SK Innovation has decided to absorb its battery separator subsidiary, SK IE Technology (SKIET). This decision aims to enhance SKIET's financial stability, streamline operations, and improve the long-term competitiveness of the separator business. The merger is set to take effect on January 1, 2027.
The merger will proceed with the approval of SK Innovation's board and SKIET shareholders. SKIET shares will be exchanged for SK Innovation shares, with the exchange ratio calculated based on recent market prices. Through this merger, SK Innovation plans to reduce overlapping costs and combine research capabilities to explore new growth areas.
SKIET was spun off from SK Innovation in 2019 and listed on the Kospi in May 2021. However, the business environment has deteriorated due to slowing growth in the electric vehicle market, delayed demand recovery in North America, and intensified price competition from Chinese manufacturers. SK Innovation has determined that integration is more advantageous than retaining SKIET as a separate entity, given the challenges in improving profitability and raising funds independently. An SK Innovation official stated, "The merger will strengthen financial stability and streamline the business structure."