NewSamsung to merge shipbuilding and engineering units

The shipbuilding and engineering units of South Korea’s Samsung group said on Monday that they will merge as the family-run giant gears up for generational ownership succession.

The board members of Samsung Heavy Industries, the world’s third-largest shipmaker, and Samsung Engineering had approved the tie-up through a share swap, said a joint statement.

Shareholders at the engineering unit would be given 2.36 shares in the shipbuilder, it said, adding that the deal would be finalised by December.

The two firms hoped to achieve total sales of 40 trillion won (HK$304.7 billion) by 2020 from 25 trillion won in 2013, it said.

Samsung Heavy focuses on shipbuilding and offshore plants while Samsung Engineering builds onshore energy plants around the world.

“The merged company will be able to provide total solutions for both offshore and onshore plants for clients, including major oil companies,” the statement said.