The board of directors at both companies approved the merger plan on Monday.
The swap ratio has been set at one Samsung Engineering share for 2.36 shares of Samsung Heavy Industries, they said.
The deal is subject to final approval by meetings of shareholders of the two companies to be convened on Oct. 27.
The merger is part of a restructuring at Samsung, South Korea's largest conglomerate, that has accelerated since Lee Kun-hee, the group’s de facto head, was hospitalized in May.
In early June, Samsung Everland Inc., the de facto holding company of the conglomerate, announced that it will go public on the country’s main bourse in the first quarter of 2015 in a move to accelerate the group’s management succession to the next generation of the owner family.
reporter
Park Sae-jin
swatchsjp@ajunews.com
