Samsung in $2.5bn merger

Korea’s Samsung Heavy Industries is taking over Samsung Engineering in a KRW $2.5 trillion ($2.5bn) deal as the group continues to restructure.

The shipbuilder will issue around 94m new shares to Samsung Engineering investors at KRW 26,972 per share.

The move will add engineering expertise to its design and construction operations.

Samsung Heavy said the companies had combined sales of about KRW 25 trillion won last year and aimed to grow that to KRW 40 trillion won by 2020.

"Samsung Group is making adjustments to its various businesses, looking for either vertical integrations or moving pieces around for other purposes," Chung Sun-sup, chief executive of corporate research firm Chaebul.com, told Reuters.

Samsung Engineering builds petrochemical and energy plants, but is currently running at a loss.

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