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Samsung Group sells its chemical businesses to Lotte Group for $2.6 billion

Samsung Group sells its chemical businesses to Lotte Group for $2.6 billion

The company said it will spin off its chemical business into a separate company, and sell a 90 per cent stake in the company to Lotte Chemical for 2.3 trillion won.

Reuters
  • Seoul,
  • Updated Oct 30, 2015 11:31 AM IST
Samsung Group sells its chemical businesses to Lotte Group for $2.6 billionSamsung Group has been exiting non-core businesses since last year, when the company said it would sell stakes in four affiliates in the defense and chemical sectors to Hanwha Group, another local conglomerate. (Photo: Reuters)

Samsung Group will sell its chemicals businesses to Lotte Group for about 3 trillion won ($2.6 billion), the latest move in efforts to simplify its ownership structure ahead of a transfer of power from its elderly chief to his heirs.

Samsung SDI said on Friday it will spin off its chemical business into a separate company, and sell a 90 per cent stake in the company to Lotte Chemical for 2.3 trillion won.

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"Lotte Chemical is also buying a 465 billion won stake in Samsung Fine Chemicals from various Samsung Group units, including Samsung Electronics," Lotte said.

Samsung Group has been exiting non-core businesses since last year, when the company said it would sell stakes in four affiliates in the defense and chemical sectors to Hanwha Group, another local conglomerate.

Lotte Chemical shares fell 12 per cent in early trade as analysts questioned the acquisition price, although many agreed the M&A will expand Lotte Chemical's limited portfolio from mostly common plastic to value-added, specialty chemical products used in automobiles or home appliances.

Shares in Samsung Fine Chemicals fell more than 10 per cent, while Samsung SDI rose 3 per cent compared to a 0.1 per cent drop in the wide market.

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(Reuters)

Published on: Oct 30, 2015 11:20 AM IST
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