SEOUL, South Korea (AP) – Two key Samsung companies are merging in a step toward ensuring the son of the group’s ailing chairman inherits control of the theme parks to smartphones conglomerate.
Samsung said Tuesday that its defacto holding company Cheil Industries Inc. will acquire Samsung C&T Corp. by offering 0.35 new Cheil shares for every Samsung C&T share.
The move, to be completed by Sept. 1, requires shareholder approval, which is expected. The combined entity will be named Samsung C&T.
Analysts say the transaction will give Samsung heir Lee Jae-yong a big say in the conglomerate including its crown jewel Samsung Electronics Co.
“Samsung Electronics is at the core of this event,” said Park Ju-gun, president at CEOScore, a private corporate watchdog. “If Lee Jae-yong controls C&T, he can secure control over Samsung Electronics.”