SK Innovation Co., the country's No. 1 oil refiner, said Thursday that its affiliate has decided to take over Dow Chemical Co's ethylene acrylic acid business in a bid to diversify its business portfolio.

Its affiliate SK Global Chemical Co. will buy Dow Chemical's EAA business for $370 million, it said in a regulatory filing.

The deal includes the purchase of EAA production facilities in the US and Spain, and the related technology, it added.

The company said the takeover is aimed at helping it venture into the packaging business. EAA materials offer excellent adhesion to foil, paper, polyolefins, and other packaging substrates. Only a few global chemicals makers such as DuPont Co. have reigned in the global market for the material, according to SK Innovation.

Earlier, SK Innovation said it would spend 3 trillion won this year to boost its chemicals and electric vehicle battery businesses. (Yonhap)