(MENAFN) Samsung Heavy Industries Co Ltd ties-up with Samsung Engineering for about USD2.5 billion, a move that adds up in a restructuring at South Korea's largest firm, The Peninsula Qatar reported.
Under terms of the agreement, Samsung Heavy Industries, the world's second-largest shipbuilder with a capitalization value of about USD6.6 billion, will issue 94 million new shares to Samsung Engineering.
The deal paves the way for further restructuring. Moreover, it caught investors by surprise and led shares of both companies to surge, as investors appeared to bet that the merger would create efficiencies for both.
The two merging companies had combined sales of about USD24.63 billion last year and aimed to grow that to USD 39.41 billion by 2020, Samsung Heavy Industries said.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.