The shipbuilding and engineering units of South Korea’s Samsung group said Monday they would merge, as the family-run giant gears up for generational ownership succession.<\/p>\n
The board members of Samsung Heavy Industries, the world’s third-largest shipmaker, and Samsung Engineering had approved the tie-up via a share swap, said a joint statement.<\/p>\n
Shareholders at the engineering unit will be given 2.36 shares in the shipbuilder, it said, adding the deal would be finalised by December.<\/p>\n
The two firms hope to achieve total sales of 40 trillion won ($39.4 billion) by 2020 from 25 trillion won in 2013, it said.<\/p>\n
Samsung Heavy focuses on shipbuilding and offshore plants while Samsung Engineering build onshore energy plants around the world.<\/p>\n
“The merged company will be able to provide total solutions for both offshore and onshore plants for clients including major oil companies,” the statement said.<\/p>\n
The country’s top business group has under its wings dozens of units including Samsung Electronics — the world’s top maker of mobile phones and TVs.<\/p>\n
The group — currently led by chairman Lee Kun-Hee — has in recent years reorganised to pave the way for his son, Jay Y. Lee, to take the helm.<\/p>\n
The senior Lee — largely credited with transforming the once-obscure electronics firm into the global giant — has been in hospital since May with respiratory and heart problems.<\/p>\n
The junior Lee is currently the vice chairman of Samsung Electronics.<\/p>\n
The Lee family controls the vast group through a highly complex web of cross shareholdings across its subsidiaries.<\/p>\n
The family has been under growing government pressure to unravel its complex cross shareholdings and make its governing structure more transparent.<\/p>\n
The group plans to take public two units to meet the tighter government rules and to eventually help the junior Lee pay vast inheritance taxes worth billions of dollars.<\/p>\n
Samsung Galaxy S5 Mini retail price in SA<\/a><\/strong><\/p>\n