The agreement came in separate board of directors' meetings of the two companies.
Under the agreement, Cheil will acquire Samsung C&T by offering 0.35 new share for every Samsung C&T share, the former said in a press release. The agreement is subject to approval by shareholders' meetings of the two companies scheduled for July. Cheil is the de facto holding company of the group, the country's top conglomerate, and Samsung C&T is a construction and trading firm.
The new entity, to be launched on Sept. 1, will be named Samsung C&T to "reflect the brand's global recognition and comply with the founding spirit of Samsung Group," the press release said.
The agreement, part of the group's efforts to reshape its business portfolio, came amid Samsung's possible leadership changeover from Lee Kun-hee, the de facto head of the group, to Lee Jay-yong, vice president of Samsung Electronics and the only son of the 73-year-old tycoon.
The senior Lee has been hospitalized since he received treatment for myocardial infarction, commonly known as a heart attack, since May last year.
reporter
Park Sae-jin
swatchsjp@ajunews.com
