The South Korean technology giant, Samsung Electronics stated that it has absolutely no plans to merge with affiliate Samsung SDS Co Ltd. this statement comes amid speculation that such a deal is in the making in order to help Samsung Group’s succession process.
Robert Yi, Samsung Electronics’ head of investor relations at a company event in Seoul stated that the management of Samsung wants him to express that it has no plans what so ever to merge with Samsung SDS.
The Samsung Group has been restructuring its sprawling business empire over the past year in order to secure a stable transfer of control from the founding family patriarch Lee Kun-hee to his three children.
Many investors and analysts have stated that they believe that Samsung Electronics and Samsung SDS which is an IT services company will soon merge. Such a deal would have benefited Samsung Group heir apparent Jay Y. Lee and his two sisters who are the major shareholders in SDS as it would have provided them with shares in Samsung Electronics.
Before this Cheil Industries Inc. and Samsung C&T Corp had announced in late May an all stock merger which had put stakes in key manufacturing and financial arms and put it under Lee heir’s control. Many investors believe that there will be more group consolidation moves in the near future.