Samsung’s shipbuilding and tech arms to merge

The shipbuilding and engineering arms of the Samsung Group announced a plan to merge by the end of the year, in another sign that restructuring is gaining speed at the company, South Korea’s largest conglomerate, in apparent response to the faltering health of its leader.

Samsung Heavy Industries will absorb Samsung Engineering by issuing 236 new shares for every 100 Samsung Engineering shares, according to the merger plan approved by the boards of both companies and disclosed in a regulatory filing. That means that Samsung Heavy, one of the world’s largest ship builders, will issue 94 million new shares, valuing the deal at 2.5 trillion won, or $2.4 billion.

Samsung’s efforts to merge affiliates with related portfolios has quickened since Lee Kun-hee, 72, the patriarch of the group’s controlling family, was hospitalized in May after a heart attack. The exact condition of Lee, chairman of the conglomerate’s crown jewel, Samsung Electronics, is a closely guarded secret.

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