GS Caltex transfers energy, materials business to GS Energy

South Korea’s second largest oil refiner, GS Caltex, has entered into a transfer of business agreement with GS Energy, the newest energy affiliate of GS Group, to shed its energy and materials businesses and concentrate its efforts on core operations. GS Energy was established by GS Caltex in January. GS Caltex will cede its gas, power, new energy, and materials business units to GS Energy, according to a statement by GS Caltex. The agreement will include a 50% stake in GS Power owned by GS Caltex, as well as the company’s interests in Haeyang City Gas, Seorabeol City Gas and other gas and power-related projects. GS Caltex will also cede its new energy and materials operations by handing over its stakes in GS Platech, GS Nanotech and Samil Polymer. The final deal is valued at 1.11 trillion won (US$946.1 billion) and will comprise of GS Caltex’s stakes in 13 subsidiaries and companies, four oil development projects, the LNG terminal in Boryung, South Chungcheong Province, and the group’s research and development center in Seoul. By transferring these units to GS Energy, GS Caltex said it will concentrate its resources in its core operations, including oil refining, petrochemicals, lubricants and lube base oils. GS Caltex plans to strengthen its presence in Asia by establishing overseas corporations in China and Singapore in the future.