Samsung General Chemicals absorbs Samsung Petrochemical

Samsung General Chemicals Co., an unlisted unit of South Korea's Samsung Group, said Wednesday that it will merge with Samsung Petrochemical Co., another unlisted subsidiary.

The merged company, to be named Samsung General Chemicals, will be launched on June 1, with shareholders to get 2.14 Samsung General Chemicals shares for each Samsung Petrochemical share they have.

The announcement came two days after Samsung SDI Co., the world's largest maker of TV displays and smartphone batteries, said it will acquire Cheil Industries Co., another Samsung affiliate that produces electronic materials and chemicals. The move was understood by corporate watchers as business restructuring in anticipation of the transfer of Samsung Group's ownership to the next generation of the family.

Samsung General Chemicals was set up in 1988 and established a 50-50 joint venture with Total, a French chemical company, in 2003.

Samsung Petrochemical was established in 1974 and set up a joint venture with German carbon fiber maker SGL in 2013.

The latest merger may help Samsung General Chemicals seek long-term growth, market watchers said. (Yonhap)