Samsung merger back on the cards

An on/off merger between two parts of the Samsung empire looks possible again. Samsung Engineering CEO Park Jung-heum has said he will once again pursue a merger with affiliate Samsung Heavy Industries, which runs one of the world’s largest shipyard.

“Samsung Engineering will seek a merger with Samsung Heavy,” Park said.

Samsung Engineering and Samsung Heavy stocks closed sharply higher on Wednesday on speculation that the two companies will again try a merger.

Last year’s merger attempt failed to materialize after they failed to secure sufficient support from shareholders who opted to sell stock back to the companies rather than participate in the all-share deal.

“I think Samsung Heavy needs to obtain engineering, procurement and project management capabilities, which are the strengths of Samsung Engineering. Samsung Engineering will diversify its portfolio into value-added projects by using Samsung Heavy’s offshore plant construction abilities,” Samsung Heavy CEO Park Dae-yong said.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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