Samsung Group, South Korea's largest conglomerate, announced it will merge its shipbuilding and engineering units. As a result, a new company will be created. Such a move will streamline the corporation’s structure and will promote effective interaction of its units. The proposed merger will take effect in December via a stock swap. The deal is valued at about $2.5 billion.
Samsung Heavy Industries Co. is one of the world’s largest makers of ships. It also produces bridge structures, constructs plants, and operates wind power facilities.
Meanwhile, Samsung Engineering has expertise in engineering, construction, and project management services.
Merging means “we are now able to provide total solutions spanning both land and sea for clients including oil majors”, Samsung press release reads.