Samsung Engineering will merge with Samsung Heavy Industries

Samsung Engineering to merge with Samsung Heavy Industries

10:09 AM, 1st September 2014
Samsung Engineering will merge with Samsung Heavy Industries

SEOUL, KOREA: Samsung Engineering Co Ltd, the largest engineering company in Korea has officially announced that it will merge with Samsung Heavy Industries, the world’s market leader in drillship LNG carriers and FPSO. The merger between Samsung Engineering and Samsung Heavy Industries was decided during their board of directors meeting on September 1 to create a “world-class total solution provider for shipbuilding and onshore and offshore services.”

The merger ratio will be fixed at 1:2.36. Therefore, Samsung Heavy Industries 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.

Through the merger, Samsung Heavy Industries will gain engineering, procurement, and project management capabilities, which are the strengths of Samsung Engineering, and establish a stable foundation for the growth of its offshore plant business. Meanwhile, Samsung Engineering, which has focused its business in onshore hydrocarbon plants, will be able to diversify into high value-added projects such as onshore LNG and offshore plants by securing Samsung Heavy Industries’ offshore plant fabrication capabilities, which is recognized as one of the best in the world.

The merger will give the two companies a chance to become a global top-tier EPC (Engineering, Procurement and Construction) company. Their goal is to grow into a world-class total solution provider, increasing their combined revenues of 25 trillion in 2013 to 40 trillion won in 2020.

“The two companies will be reborn as the world’s most competitive plant company based on our world-class manufacturing facilities, fabrication experience, and outstanding technical manpower in the onshore and offshore businesses,” said Dae-young Park, President and CEO, Samsung Heavy Industries.

 

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