이 기사는 2022년 06월 02일 08시04분 thebell에 표출된 기사입니다

Market insiders are paying attention to whether SK ecoplant will be able to retain its leading position in the waste management industry without acquiring Eco Management Korea (EMK).

SK ecoplant is likely to decide not to join a bidding race for EMK as the company still hasn’t participated in the due diligence, according to industry sources on Monday. Five shortlisted potential buyers, including Ecorbit and foreign infrastructure funds, already started due diligence about two weeks ago. It will take long to conduct due diligence on EMK’s eight subsidiaries scattered across the nation.

SK ecoplant is hesitant to make a decision due to EMK’s business structure which relies heavily on the incineration business. EMK reportedly holds the second largest share in the general waste incineration market following SK ecoplant.

Given other bidders including Ecorbit hold minority share in the waste incineration market, SK ecoplant is highly likely to retain its top position in the market even if it doesn’t take over EMK.

In a situation where SK ecoplant aims to top all segments of the waste management industry, it would be more efficient for the company to carry out mergers and acquisitions (M&A) that help it improve its weaknesses including landfill and water treatment instead of purchasing EMK through fierce competition.

Some market insiders said SK ecoplant may take over companies that are smaller than EMK if it aims to enhance the incineration business down the road. Busan-based Energy Networks and Ansan-based Sunglim Oil & Chemical are considered potential targets. It remains to be seen whether the two companies will be put up for sale.

“Considering that SK ecoplant aims to solidify its top position in the industry, it may try to acquire EMK alongside other incineration companies,” an industry source said. “This is a plausible scenario as SK ecoplant probably needs to raise about 500 billion won if it uses acquisition financing.” (Reporting by Byung-keun Kam)