SK Innovation Wins Shareholder Nod for Merger, Boosting Shares

South Korea’s SK Innovation Co secured shareholders’ approval on Tuesday to proceed with a controversial merger, overcoming opposition from the country’s largest pension fund.

The company will be combined with unlisted power producer SK E&S Co. effective November 1, creating the nation’s biggest energy producer. Both firms are affiliates of SK Group, which is South Korea’s second-biggest conglomerate.

Nearly 86% of its shareholders, who attended the extraordinary meeting, voted in favor of the merger, SK said in an emailed statement. Shares of SK Innovation rose as much as 5% in Seoul trading.

The deal is crucial for SK ...