Hanwha Group acquires stake in Samsung Techwin
According to a press release published on the Hanwha Group website:
Hanwha Group concluded a deal of the acquisition of stocks, including a 32.4% stake in Samsung Techwin and a 57.6% stake in Samsung General Chemicals (81% of stocks including Samsung Techwin stake, except treasury stocks) from the Samsung Group on 26th.
Hanwha Corporation, Hanwha Chemical and Hanwha Energy held a board of directors meeting and agreed to undertake stakes in Samsung Techwin and Samsung General Chemicals. As a result, Hanwha acquires a 32.4% stake in Samsung Techwin, all the Samsung Techwin stocks that Samsung Group held , and Hanwha Chemical and Hanwha Energy jointly takes over a 57.6% stake(treasury stocks not included)in Samsung General Chemicals.
Hanwha Group ranks itself in the first place in the defense industry of Korea through this M&A of Samsung Techwin and Samsung Thales with its sales in the defense business increasing to about 2.6 trillion won from 1 trillion won in 2013.
In addition, Hanwha Group secures the top ranking in the petrochemical industry in Korea with the sales of 18 trillion won in the petrochemical business through the M&As of Samsung General Chemicals and Samsung Total Petrochemicals.
Through the M&As, Hanwha Group was able to not only realize the economy of scale, but also upgrade its stature in the defense and the petrochemical industries which have been the growth engine of the group for the past 60 years in the largest scale. With the successful concluding of the deal to strengthen its core capabilities in both industries suggested by the Group, Hanwha Group has finished reforming its business structure in the medium-to-long term based on the “select and concentration strategy.” Besides, it has gained a strong foothold to grow into one of the world’s top companies in its key business areas.
Hanwha Group, founded in 1952, is one of the Top-Ten business enterprises in South Korea and a “FORTUNE Global 500” company. Hanwha Group has 51 domestic affiliates and 113 global networks in three major sectors: manufacturing and construction, finance, and services and leisure.