Corporate maneuver at Samsung strengthens heir's influence
SEOUL, South Korea (AP) — Two key Samsung companies are merging in a step toward giving the son of the group's ailing chairman control of the theme parks to smartphones conglomerate.
Samsung says 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.
Analysts say the move will give Samsung heir Lee Jae-yong greater control over the conglomerate including its crown jewel Samsung Electronics Co.
The combined entity will be named Samsung C&T.
Samsung said the merger of Cheil, which is Samsung's fashion business and theme park operator, with the C&T construction and trading firm, will create a global lifestyle and biotechnology company.