Samsung Heavy Denies Renewed Merger Talks With Samsung Engineering

ocean rig drillship
Ocean Rig drillships at Samsung Heavy Industries. File photo courtesy Ocean Rig

ReutersSEOUL, April 28 (Reuters) – South Korean shipbuilder Samsung Heavy Industries Co Ltd denied on Tuesday a South Korean media report that it will try again to merge with sister company Samsung Engineering Co Ltd later this year.

The DongA Ilbo, citing an unnamed Samsung Group official, reported that the two firms will launch another merger attempt in May or June as part of Samsung Group’s efforts to simplify its shareholding structure in preparation for the succession of control from the ailing patriarch Lee Kun-hee to his children.

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.

(Reporting by Joyce Lee; Writing by Se Young Lee; Editing by Stephen Coates)

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