이 기사는 2022년 05월 26일 08시02분 thebell에 표출된 기사입니다

SK ecoplant hasn’t participated in due diligence on South Korea’s waste managing and recycling service provider Eco Management Korea (EMK), raising the possibility that it has decided not to join the race.

Many industry insiders had widely expected that the company will participate in due diligence on the company as a major player in the waste management mergers and acquisitions (M&A) market even though it didn’t participate in a preliminary bid.

Five shortlisted potential buyers, including Ecorbit and foreign infrastructure funds, already started due diligence about 10 days ago. It will take long to conduct due diligence on EMK’s eight subsidiaries scattered across the nation.

This has raised skepticism about SK ecoplant’s participation in the race. Market insiders said there won’t be enough time for SK ecoplant to secure sufficient information to decide on the acquisition even if it starts the due diligence now. The seller of EMK including IMM Investment reportedly aims to complete the deal in the first half.

“It is an important factor for shortlisted potential buyers whether SK ecoplant will participate in due diligence,” a source familiar with the situation said. “There are many views that SK ecoplant should have started due diligence last weekend if it had an intention of acquiring EMK.”

Some said that SK ecoplant may join the final round of bidding after conducting belated due diligence because the company has deep understanding of waste management industry through multiple M&As and has had enough time to get information indirectly.

EMK has widely been expected to be put up for sale this year since the beginning of 2021. SK ecoplant, which aims to cement its leading position in the waste management industry, is highly likely to have secured information on EMK before the company was up for sale.

Industry insiders expect Ecorbit to become the winner if SK ecoplant decides not to participate in the final round of bidding. Shortlisted bidders are paying attention to how much Ecorbit will offer for EMK. (Reporting by Byung-keun Kam)