SEOUL, KOREA - Two Samsung Group companies Samsung Heavy Industries and Samsung Engineering have decided to merge with each other in a board of directors meeting on September 1. According to company sources on the same day, the two companies will exchange shares at the rate of 1 to 2.36. For every share of Samsung Engineering, Samsung Heavy Industries will grant 2.36 shares to Samsung Engineering shareholders.

 

On October 27, an extraordinary shareholders meeting will be held and the merger will be closed on December 1. After the union, the merged company will change its corporate name as well. With the merger, Samsung Heavy Industries could secure the capabilities in engineering, purchasing, and project management, thereby raising its competitiveness in the area of offshore plant building. 

 

As for Samsung Engineering, it will be able to diversify its business areas to high value-added land-based liquefied natural gas base and offshore plant construction.

 

In terms of sales revenue, the two companies will be reborn as a super-large company with an annual sales revenue of 40 trillion won by 2020 from about 25 trillion won in 2013.