Samsung Group To Focus On Its Tech Business; Agrees To Sell Chemical Assets To Lotte Group For Around 2.63 Billion USD
On Friday, Samsung Group announced that it will be selling its chemical assets to Lotte Group for around $2.63 billion in effort to focus on its tech business.
According to Korea Times on Friday, Lotte Chemical Co. will be acquiring 31.5 percent stake in Samsung Fine Chemicals Co. and is set to buy 90 percent of Samsung SDI Co.'s chemical unit. The deal will be Lotte Group's largest acquisition.
Other companies set to sell chemical unit shares include Samsung Electronics Co. and Samsung Electro-Mechanics Co.
Lotte plans to launch a new entity on February as it seals the deal with Samsung Group by the first half of 2016.
"Through this deal, Lotte will expand its business portfolio from the petrochemicals business to the fine chemicals business," said Lotte in a statement.
Within the next five years, Samsung SDI plans to invest more than two trillion won in its battery business in effort to emerge as the top electric vehicle battery maker in the world.
"The stake sale is aimed at reorganizing the company structure to focus on the promising battery business and acquire funds for overseas expansion," said Samsung SDI.
Korea Herald reported on Friday that Samsung Fine Chemical's 49 percent stake in Samsung BP Chemical will also be turned over to Lotte Group.
"The stock disposal will be put to a vote at an extraordinary shareholders meeting which will likely take place earlier next year," noted a Samsung SDI spokesperson.
Other Samsung affiliates' shareholders will be voting on the sell-off agreement early in 2016.
Samsung heir apparent, Lee Jae Yong, reportedly met with Lotte Korea chairman Shin Dong Bin to finalize agreements between their companies.
"The takeover deal will diversify the business portfolio of Lotte Chemical, whose main businesses including those in polyester and polyethylene face tough challenges ahead due to heated competition," noted a market analyst who was skeptic about Lotte's acquisition of Samsung Group's chemical assets."