Samsung SDI, the group’s unit in charge of
developing battery technologies, and affiliate Cheil Industries have merged, creating Samsung’s
fifth largest business unit. Connie Kim has the details. The world’s leading TV display and smartphone
battery manufacturer Samsung SDI and Cheil Industries, the group’s chemical and electronics
material unit, have merged creating a giant parts and materials company. Starting out as display producer, Samsung
SDI has expanded into making rechargeable batteries.
Cheil concentrates on its chemicals and electronic materials business after it sold its fashion
division to Samsung Everland last year. SDI says it hopes the acquisition creates
a synergy effect by combining its battery business line and Cheil’s electronics materials
used in semiconductors and displays. “The merger with Cheil Industries gives SDI
access to Cheil’s electronics. It’ll also makes Samsung SDI more competitive in the
secondary battery sector.” With the merger,…Samsung SDI will be the
corporation’s fifth largest business unit… with a market capitalization of some 9-point-3
billion U.S. dollars. The tech giant expects to see its sales expand
more than three-fold from eight-point-nine billion dollars in 2013 to 27-billion by 2020. The merger has also shone some light on the
succession of business divisions within the group.
Samsung Electronics’ Vice Chairman Lee Jae-yong is expected to look over the electronics and
finance division, his sister Lee Boo-jin will run hotels and construction and other sister
Lee Seo-hyun will control Samsung’s fashion and media business. Although the Cheil Industries is closing operations
after 60 years, market watchers say it’ll keep its name as Samsung founder Lee Byung-chul
had great affection for the unit. Connie Kim, Arirang News.