Samsung Heavy Industries merges with engineering company

OE Staff
Tuesday, September 2, 2014

Seoul, South Korea-headquartered Samsung Heavy Industries will merge with Samsung Engineering Co., Ltd., the companies announced on 1 September 2014.

The goal of the merger is to allow the companies a chance to become a global top-tier EPC (engineering, procurement and construction) company, eventually becoming a total solution provider, increasing their combined revenues of US$24.5 billion (KRW25 trillion) in 2013 to US$39.2 billion (KRW 40 trillion) by 2020.

The merger was agreed upon during Samsung's board of directors meeting on 1 September.

“By combining the expertise and technologies we have each accumulated as individual companies in the plant, shipbuilding, and offshore industries,” says Choong Heum Park, President and CEO of Samsung Engineering. “We will emerge as a total solution provider that caters to the diverse needs of our clients,” says Choong Heum Park, President and CEO of Samsung Engineering.

The merger ratio will be fixed at 1:2.36. Therefore, Samsung Heavy Industries says it will issue new stocks so that the shareholders of Samsung Engineering can exchange their shares for the Samsung Heavy Industries’ shares and receive 2.36 Samsung Heavy Industries shares for every Samsung Engineering share they own.

The two companies plan to hold a special shareholders meeting on 27 October 2014 and complete the merger process on 1 December 2014.

Categories: Procurement Asia Engineering Activity

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