This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:34 p.m. on Nov. 19, 2025.
SK On is pushing to sell Daekyung O&T, a producer of biodiesel feedstocks, and it is reported that strategic investors (SI) from Japan and the Middle East as well as overseas financial investors (FI) have shown interest in acquiring the company. However, because Daekyung O&T's performance has cooled, it is uncertain whether SK On will be able to obtain the price it wants.
On the 19th, sources in the investment banking industry said SK Group is seeking potential buyers to sell the 40% equity stake it holds in Daekyung O&T through SK On. Sale requires the consent of Eugene Private Equity (PE), the private equity firm that holds 60% of Daekyung O&T, and Korea Development Bank Private Equity (PE) unit.
If cash-rich Japanese and Middle Eastern oil refiners join, there is talk that a 100% outright sale of the equity could be possible. Eugene PE and Korea Development Bank PE, which have so far been reluctant to sell, could find justification to change their minds if offered a high purchase price.
From the perspective of refiners, Daekyung O&T is considered an attractive asset. As environmental, social and governance (ESG) management becomes increasingly important, they need capabilities to manufacture and distribute eco-friendly fuels in addition to diesel and gasoline.
Daekyung O&T is the country's leading supplier of waste cooking oil and animal-based bio feedstocks. It imports soybeans from abroad to make cooking oil, or processes waste oil from homes and restaurants into eco-friendly renewable energy. It also produces feedstocks for automobile and ship fuels and sustainable aviation fuel (SAF) from waste oil generated during animal slaughter.
In 2023, SK Trading International (SK TI), Korea Development Bank PE and Eugene PE established a special purpose company (SPC) and acquired Daekyung O&T from STIC Investments for about 400 billion won, dividing the SPC equity in a 4:6 ratio. Last year, when SK TI merged into SK On, SK On came to hold the SPC equity.
SK Group is currently carrying out a comprehensive rebalancing. It is preserving value chains centered on semiconductors and batteries and disposing of other noncore assets. The recent decision to sell SK oceanplant, a maker of offshore wind substructures, is part of this approach.
Daekyung O&T's performance has softened. That is due to the inauguration of a Trump second-term administration that is lukewarm on the energy transition and Europe slowing the pace of its energy transition plans. Daekyung O&T, which recorded 584.5 billion won in sales and 40.2 billion won in operating profit in 2023, saw both sales and profit contract last year to 502.7 billion won in sales and 30.5 billion won in operating profit.