Cheil Industries and Samsung C&T Corp, both key affiliates of Samsung Group have revealed plans to merge by the end of August.
The new entity will be launched from 1 September and will be named Samsung C&T Corp to “reflect the brand’s global recognition and historic value.”
Yoon Ju-hwa, who heads Cheil Industries, said in a press statement to YonHap News Agency that the decision was a strategic one to â€śsecure core competencies and grow as a leading global company” that can provide “integrated premium lifestyle services.”
Previously known as Samsung Everland Co, Cheil Industries is the holding company of Samsung Group. Cheil Industries is also real estate developer and theme park company. Its business portfolio includes construction, fashion, and resorts. Meanwhile Samsung C&T is the group’s construction and trading arm.
Reported by the FT, Samsung said the merger is to help in creating synergy and developing new opportunities overseas for Cheil’s fashion, resort and catering businesses. Choi Chi-hun, CEO of Samsung C&T also said the merger will help diversity the business portfolio and find new growth in the areas of fashion and biotechnology.
The combined company is expected to post annual revenues of about US$54.7 billion in 2020.