HD Hyundai Oilbank consortium completes swift acquisition of Daekyung O&T

A consortium of HD Hyundai Oilbank and Tenet Equity Partners (Tenet EP) has completed its acquisition of Daekyung O&T, South Korea's largest biodiesel feedstock producer, closing the deal within a month of signing the share purchase agreement.

According to investment banking sources, the HD Hyundai Oilbank-Tenet EP consortium completed the final payment for the Daekyung O&T acquisition in late June, formally closing the transaction. The deal was valued at around 500 billion won ($322 million). The acquisition covers the entire stake in Daekyung O&T held by SK On and the Yujin Private Equity-Korea Development Bank PE partnership.

Deloitte Anjin served as sell-side financial adviser and auditor, while law firm Bae, Kim & Lee acted as legal counsel for the sellers. The process began in earnest in January and concluded in roughly six months, with negotiations prioritizing the strategic importance of the sector and the stability of deal closure.

Founded in 1995, Daekyung O&T specializes in the manufacturing and wholesale of animal and vegetable fats and oils. The company processes slaughterhouse byproducts into animal fats such as lard oil and refines waste cooking oil into feedstock for eco-friendly fuels. It is regarded as a key supplier of raw materials for biofuels including sustainable aviation fuel and biodiesel.

The consortium was named preferred bidder in April after beating out Eneos, Japan's largest refiner, in a competitive process. It signed the share purchase agreement in late May and completed the final payment within a month. Industry observers note that deals of this scale — typically in the hundreds of billions of won — usually require considerable time for financing, regulatory approvals and merger filings, making the pace of this closing unusually fast.

The consortium secured investment commitment letters from multiple institutional investors at the binding offer stage, giving its financing plan a concrete foundation. HD Hyundai Oilbank's subordinated capital contribution also helped accelerate the closing. The consortium structured the deal to avoid triggering a separate merger filing requirement, allowing it to move with unusual agility.

Industry watchers expect HD Hyundai Oilbank to use the acquisition to pivot away from its fossil-fuel-centered business model and accelerate its expansion into low-carbon fuels such as biodiesel and sustainable aviation fuel.

For Tenet EP, the deal raised the firm's profile. Tenet EP is a private equity fund manager founded in 2024 by Shim Jin-bo, a former MBK Partners executive. The firm acquired power equipment maker Powermax for around 200 billion won last year and has now closed a deal with a strategic investor, rapidly building a name for itself in the mid-market buyout space.

The acquisition drew attention as a Korea-Japan refiner rivalry after Eneos entered the bidding. Tenet EP strengthened its bid by bringing HD Hyundai Oilbank on board as a strategic investor, while HD Hyundai Oilbank pursued the deal aggressively to secure a stable supply chain for biofuel feedstock.