Samsung Companies Consider Merger Again
Aiswarya Lakshmi
Thursday, September 17, 2015
South Korean shipbuilder Samsung Heavy Industries Co will try again to merge with sister company Samsung Engineering Co Ltd later this year, reports Korea Times.
Samsung Engineering CEO Park Jung-heum has said he will once again pursue a merger talk.
"Before pushing for the deal, we need understanding from the financial markets, which we believe is a key condition," he told local reporters.
Samsung Heavy's planned $2.5 billion takeover of Samsung Engineering collapsed in November due to shareholder opposition. Some investors were dubious about the benefits of combining a shipbuilder with an engineering and construction firm.
Samsung Heavy was in deep trouble as low oil prices hit its offshore plant business. It reported a $1.3 billion operating loss for the June quarter, a lot worse than the street expectations.
Park said the merger between the group's shipbuilding and engineering units should be pursued again to help improve the group's competitiveness with streamlined structures amid challenging business situation.