SEOUL, May 26 (Korea Bizwire) – Cheil Industries and Samsung C&T, two key affiliates of South Korea’s top conglomerate Samsung Group, said Tuesday they are planning to merge by the end of August.
“Under the merger agreement, subject to approval from the two companies’ shareholders, Cheil Industries will acquire Samsung C&T by offering 0.35 new share for every Samsung C&T share,” Cheil Industries said in its release.
The new entity will be launched on Sept. 1 after approval from shareholders in July. It will be named Samsung C&T to “reflect the brand’s global recognition and historic value.”
The combined company will target annual revenue of about 60 trillion won (US$54.7 billion) in 2020, a sharp rise from the two’s annual revenue of 34 trillion won in 2014.
The move is seen as part of the groupwide efforts to reshape its business portfolio amid speculation over a leadership change to Lee Jay-yong, vice president of Samsung Electronics and son of group owner Lee Kun-hee who has been hospitalized since May last year.