Lotte to take over Samsung's chemical units
Lotte Chairman Shin Dong-bin
By Kim Yoo-chul
Lotte Group has agreed with Samsung Group to purchase the latter’s chemical affiliates and a chemical unit of Samsung SDI for about between 2.5 trillion won and 3 trillion won, the latest move by Samsung in the task of restructuring the county’s most powerful conglomerate.
“Lotte Chemical will hold a board meeting Oct. 30 and vote on the issue to takeover Samsung’s chemical units,” a high-ranking executive said late Thursday.
Samsung SDI will hold a board meeting early Friday, according to Samsung officials. The deal will be subject to shareholder approval.
Top management at Samsung Group reached a consensus to sell a 90 percent stake in Samsung SDI’s chemical business, a 31.23 percent stake in Samsung Fine Chemicals and 49 percent of Samsung BP Chemicals to Lotte Group.
Specifically, Samsung SDI, the battery-making affiliate of Samsung, will separate its chemical business division to focus more on battery-related businesses.
A spokesman said Samsung SDI was in talks with Lotte to handover its chemical business as part of the group-wide ongoing strategy to realign and restructure business units focusing on promising ones as power shift is under way in the conglomerate led by Samsung Vice Chairman Lee Jae-yong.
“Final prices will be decided after checking fact-sheets of the three Samsung affiliates. But it’s expected that the volume of the transaction will be between 2.5 trillion won and 3 trillion won,” said the executive. Samsung SDI said it has no comments about the expected monetary value of the swap deal.
Samsung’s decision to abandon all chemical businesses come a few months after it also dropped its defense and some chemical businesses on Hanwha Group.
Samsung Vice Chairman Lee met with Lotte Chairman Shin Dong-bin for the mega business decision before power disputes between the two sons of Lotte founder.
“The deal was nearly vaporized. But Lotte’s Shin pushed Samsung to complete the deal,” an official said.
Samsung officials said while Chairman Lee Kun-hee preferred to expand businesses, Vice Chairman Lee is looking to move in the other direction and make the conglomerate more compact. For example, Samsung SDI is focusing more on batteries.
Samsung Electronics earlier said it will strengthen its policy for more shareholder return.