AK Holdings to merge three chemical subsidiaries

AK Holdings is merging three of its subsidiaries, all involves in the chemical business, into a single company.

[AK HOLDINGS]

AK Holdings is merging three of its subsidiaries, all involved in the chemical business, into a single company.

AK ChemTech and Aekyung Chemical will be combined with Aekyung Petrochemical.

The merged entity's tentative name is Aekyung Chemical.

The plan was approved by the boards of each company on Thursday and the merger process is expected to complete in November if shareholders approve in September.

AK Holdings own 49 percent Aekyung Petrochemical, 81 percent of AK ChemTech and 100 percent of Aekyung Chemical.

After all the transactions are complete, AK Holdings will own 62 percent of the remaining entity.

The merged company’s sales objective is 4 trillion won by 2030 and 300 billion won of operating profit.

The chemical business will be a core business for us in the post-coronavirus era, said Lee Seok-joo, CEO of AK Holdings in a release Thursday.

“Companies will join forces to explore new business opportunities and secure an upper hand in the fierce survival game.”

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]