This article was displayed on the ChosunBiz MoneyMove (MM) site at 2:15 p.m. on Jan. 15, 2026.
Domestic private equity fund (PEF) managers J&Partners and Keystone Partners are forming a consortium with HD Hyundai Oilbank, LX International, and JC Chemical to pursue the acquisition of bio‑diesel feedstock producer Daekyung O&T. Daekyung O&T is in the process of selling its equity as SK On seeks to improve its financial structure.
According to the investment banking (IB) industry on the 15th, the consortium plans to submit a letter of intent (LOI) for Daekyung O&T's bid next week. The sale target is 100% of Daekyung O&T equity. SK On and Eugene Private Equity–Korea Development Bank Private Equity respectively hold 40% and 60% of Daekyung O&T equity. The sale price is around 500 billion won.
J&Partners, together with an SI, plans to form a 100 billion won fund, and Keystone Partners plans to contribute to the special purpose company (SPC) that will acquire Daekyung O&T by using its existing blind fund. It will take over 180 billion won in acquisition financing from NH NongHyup Bank, and Keystone Partners will cover the balance.
Daekyung O&T is Korea's No. 1 supplier of waste cooking oil and animal‑based bio feedstocks. It imports soybeans from overseas to make cooking oil, and processes waste oil from homes and restaurants into eco‑friendly renewable energy. It also produces feedstocks for automobile and marine fuels and sustainable aviation fuel (SAF) using waste oil generated during animal slaughter.
The consortium plans to go beyond a simple alliance and build a value chain that connects "feedstock procurement–collection–pre‑treatment–consumption." Leveraging its global network, LX International will procure scarce waste cooking oil and animal fats at low cost at home and abroad, while Daekyung O&T will collect and conduct primary processing to serve as a large‑scale feedstock base. JC Chemical will then finely pre‑treat Daekyung O&T's feedstocks to meet HD Hyundai Oilbank's refining process specifications and supply them.
Some expect the consortium to have an edge in being named preferred bidder, given the formation of a stable captive market. Refiners such as GS Caltex and Japan's ENEOS have also shown interest in acquiring Daekyung O&T, but they are reportedly yet to find suitable partners to join the bid.
In 2023, SK Trading International (SK TI) and KDB PE·Eugene PE established an SPC and acquired Daekyung O&T from STIC Investments for the mid‑400 billion won range. They split the SPC equity 4 to 6, respectively. Last year, SK TI merged into SK On, leaving SK On holding the SPC equity.
Daekyung O&T's performance has cooled. The second Trump administration, which is passive about the renewable transition, has taken office, and Europe has also moved to moderate the pace of its energy transition plans. After posting 584.5 billion won in revenue and 40.2 billion won in operating profit in 2023, Daekyung O&T last year recorded 502.7 billion won in revenue and 30.5 billion won in operating profit, with both sales and profit declining.
An HD Hyundai Oilbank official said, "We are reviewing various options to secure biofuels, but nothing has been decided specifically."