Seoul: SK Innovation Co., South Korea's leading oil refiner, announced plans to absorb its battery materials unit as part of a strategic move to restructure its battery business.

According to Yonhap News Agency, the company revealed in a regulatory filing that it will take over SK IE Technology Co. (SKIET) to enhance the competitiveness of the battery separator business. The absorption will be executed through a share swap between SK Innovation and SKIET, with a ratio set at 1 to 0.1174540.

The proposed plan is subject to approval and will be decided at shareholder meetings for both companies scheduled for November 24.