Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Samsung Heavy Industries Co., the third-biggest shipbuilder in the world, is to merge with Samsung Engineering Co. by the end of the year in a deal estimated at about 2.5 trillion won (~$2.5bn). The move comes as the Samsung conglomerate, or chaebol, is restructuring major businesses in light of new Korean chaebol regulation and a possible inheritance procedure.

“Samsung Group is making adjustments to its various businesses, looking for either vertical integrations or moving pieces around for other purposes,” Chung Sun-sup, CEO of Chaebul.com, said for Retuers. “The key purpose is to lay the groundwork that will make it easy for the Lee heirs to divide the inherited assets or separate out their own turfs within the group after they take control.”

Shareholders Samsung Engineering Co. will get 2.36 shares in Samsung Heavy Industries Co., as about 94 million new shares will be issued by Heavy at the price of KRW 26 972. This price values the merger at ~$2.5bn.

The merger will add Samsung Heavys, shipbuilding, construction and energy businesses to Samsung Engineerings vast portfolio, which itself includes energy, manufacturing, construction and engineering. As reported by the Financial Times, Samsung Heavy said that the merger between the businesses means “we are now able to provide total solutions spanning both land and sea for clients including oil majors”.

Samsung Heavy Industries Co. Ltd was 6.24% up to close at KRW 28 950 per share today, marking a one-year change of -29.65% and valuing the company at KRW 6.30tn (~$6.24bn). According to the Financial Times, the 27 analysts offering 12-month price targets for Samsung Heavy Industries Co. Ltd have a median target of KRW 34 000, with a high estimate of KRW 45 000 and a low estimate of KRW 23 000. The median estimate represents a 17.44% increase from the last price of KRW 28 950.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Nissan to acquire up to 15% stake in Renault’s Ampere unitNissan to acquire up to 15% stake in Renault’s Ampere unit Nissan Motor Co Ltd (7201) and Renault SA (RENA) on Monday disclosed details of their reshaped alliance. The Japanese auto maker said it would acquire a stake of up to 15% in Renault's electric vehicles unit Ampere."Nissan's intention […]
  • IONQ Inc Stock Price Is Up 120% Over the Past 30 DaysIONQ Inc Stock Price Is Up 120% Over the Past 30 Days Key Takeaways:IonQ's Q3 revenue exceeded expectations, driving a remarkable 120% increase in its stock price over the past 30 days. Concerns over the company's valuation remain, with a market capitalization of $7.23 billion and a […]
  • GBP/USD fell from session highs after UK data stringGBP/USD fell from session highs after UK data string British pound came off almost eight-month highs against the US dollar on Tuesday, following official data to show that consumer price index in the United Kingdom decelerated in August, while the greenback was pressured ahead of Federal Open […]
  • Forex Market: GBP/USD daily trading outlookForex Market: GBP/USD daily trading outlook Yesterday’s trade saw GBP/USD within the range of 1.4188-1.4280. The pair closed at 1.4189, shedding 0.50% on a daily basis. It has been the 40th drop in the past 73 trading days and also the sharpest one since April 5th, when the pair went […]
  • EUR/GBP pair at 1 month high after crucial UK dataEUR/GBP pair at 1 month high after crucial UK data Euro currency registered an expansion against the British pound on Wednesday trade session to one month high after official data from UK showed that Retail Sales sunk during April.EUR/GBP pair rose to 0.8578 during European session, […]
  • Facebook shares rebound on Wednesday, company to provide free ads to WHO as it battles misinformationFacebook shares rebound on Wednesday, company to provide free ads to WHO as it battles misinformation In a post, Facebook Inc's (FB) Chief Executive Officer Mark Zuckerberg said that the social media company would provide free advertisements to the World Health Organization (WHO) in an attempt to combat coronavirus misinformation.The […]