SK Gas (018670.KS) will absorb SK Advanced, its effectively wholly owned propane dehydrogenation (PDH) subsidiary, after the board approved the merger agreement on the 26th. The transaction will issue no new shares, leaving existing SK Gas shareholders’ equity ratios unchanged. By combining SK Gas’s propane procurement and trading capabilities with SK Advanced’s propylene production, the company aims to improve operating efficiency, sourcing, sales coordination and financial management. The merger follows SK Gas’s June securitization of assets at the Ulsan GPS combined LNG-LPG power plant and comes as SK Advanced faces sustained financial pressure, including a ₩140 billion operating loss and ₩245 billion net loss last year, a debt-to-equity ratio in the 400% range and a BBB+ credit rating with a negative outlook.