Lotte Group signed a deal with Samsung Group on Friday to acquire Samsung's chemical affiliate. Lotte said on the day it pulled off deals with the nation’s largest conglomerate to buy Samsung SDI's chemical business and Samsung Fine Chemicals.
The deal price stands at around 3 trillion won, the highest price among the domestic chemical merger and acquisition. Lotte is expected to secure management control by taking a 31.5 percent stake of Samsung Fine Chemicals and a 90 percent stake of Samsung SDI's chemical business.
The remaining 10 percent stake of Samsung SDI will be left to maintain the strategic relationship with the two companies. Lotte said it would guarantee the employment of Samsung SDI.
The food and chemicals giant is scheduled to complete the takeover in the first half of next year after going through due diligence and the approval from the Fair Trade Commission.
Samsung SDI's chemical business currently has the sixth largest market share in the global market and the second largest in the domestic market in terms of high-value added ABS used for electronics, home appliances and vehicles' finished materials. Industry watchers said the area is expected to see a continued growth, fueled by the rising demand from China which consumes 54 percent of global ABS production.
Samsung Fine Chemicals also has a competitive edge at home and abroad with its technology in fine chemistry areas used for construction, industry, fiber and medicine.
