This article was displayed on the ChosunBiz MoneyMove (MM) site at 2:38 p.m. on Feb. 9, 2026.
The acquisition battle for Daekyung O&T, a biodiesel feedstock producer, is shaping up as a Korea-Japan face-off. After domestic refiner HD Hyundai Oilbank, Japanese refiner Eneos has jumped in, setting the stage for a full-fledged showdown among refiners over energy feedstock supply chains.
According to the investment banking (IB) industry on the 9th, Japanese refiner Eneos has reportedly joined the bid to acquire Daekyung O&T. The sellers are expected to proceed with negotiations in a progressive deal format with HD Hyundai Oilbank and Eneos, both strong bidders, without naming a preferred bidder.
A progressive deal is an "auction quote" method that reignites price competition among finalists. Because the sellers can disclose one candidate's bid to another to induce a higher price, it favors maximizing the sale price as the contest heats up.
Eneos, boasting a market capitalization of more than 35 trillion won, is Japan's largest energy corporations and has close ties with SK Group. SK Innovation purchased Eneos equity worth 98 billion won in 2007 and has maintained a strategic partnership since. Although it sold the entire stake early last year, analysts say the relationship remains friendly.
An IB industry official said, "It looked like Eneos would find a domestic financial investor (FI) and move to acquire," adding, "But the SK side regarded Eneos as a trustworthy negotiating partner given their long-standing ties, and (so Eneos) jumped in alone without separately seeking a domestic FI."
To shore up insufficient funds, HD Hyundai Oilbank considered private equity (PEF) managers Keystone Partners and J&Partners as acquisition partners, but it is said to have decided to work with a different PEF manager. The prevailing view is that GS Caltex will not participate in the acquisition.
The sale price of Daekyung O&T is expected to reach up to 500 billion won. The asset for sale is 100% equity in Daekyung O&T. SK On and Eugene Private Equity (PE)-Korea Development Bank Private Equity (PE) Division each hold 40% and 60% equity in Daekyung O&T.
Daekyung O&T is Korea's No. 1 corporations in supplying bio-based feedstocks from used cooking oil and animal sources. It imports soybeans from overseas to produce cooking oil, and processes household and restaurant waste oil into eco-friendly renewable energy. It also produces feedstocks for automobile and marine fuels and sustainable aviation fuel (SAF) from waste oil generated during animal slaughter.
In 2023, SK Trading International (SK TI) and KDB and Eugene PE established a special purpose company (SPC) and acquired Daekyung O&T from STIC Investments for about 400 billion won, splitting the SPC equity 4 to 6. After SK TI merged into SK On last year, SK On came to hold the SPC equity. However, in line with the group's broader financial structure improvement and business reorganization, the asset was put up for sale.
Daekyung O&T's performance has cooled. The launch of the Trump second-term administration, which is reluctant about the transition to renewable energy, and Europe's move to moderate the pace of its energy transition plans are to blame. After posting 584.5 billion won in revenue and 40.2 billion won in operating profit in 2023, Daekyung O&T saw both revenue and profit decline last year to 502.7 billion won and 30.5 billion won.