The merged entity, which will operate under the SK On name, aims to strengthen its raw material procurement capabilities and financial stability in the increasingly competitive global battery market.
SK Trading International, which merged with SK On in November, now operates as an independent company-in-company (CIC) under the name "SK On Trading International" within SK On's corporate structure.
SK Enterm, which owns South Korea's largest commercial tank terminal, will become the terminal business division of SK On Trading International following the merger.
The consolidation is expected to expand SK On's annual revenue from 13 trillion won (US$8.91 billion) to 62 trillion won, while total assets will grow from 33 trillion won to 40 trillion won, based on end of 2023 figures.
The company anticipates additional annual earnings before interest, taxes, depreciation, and amortization (EBITDA) of 500 billion won, supported by stable earnings from the merged entities which have limited capital expenditure requirements and low sensitivity to external market conditions.
The merger will allow SK On to leverage SKTI's expertise to reduce raw material procurement costs and manage market risks, while expanding into battery mineral trading including lithium, nickel, and cobalt.
The company plans to maintain independent operations for each business unit under the CIC structure to maximize future growth potential.
"The synergies created through this merger will secure our competitive advantage and lay the foundation for long-term growth as we transform into a global battery and trading company with both growth potential and stability," said an SK On official.
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