South Korea’s Samsung Heavy Industries (SHI) has confirmed it is to merge with Samsung Engineering Co., Ltd. with the aim of creating a “world-class total solution provider for shipbuilding and onshore and offshore services”.
Samsung Engineering shareholders will be able to exchange their shares and receive 2.36 SHI shares for every Samsung Engineering share they currently own. The two companies plan to hold a special shareholders meeting on 27 October with the aim of completing the merger process by 1 December.
SHI says that through the merger it will gain engineering, procurement, and project management capabilities, which it describes as core strengths of Samsung Engineering, and establish a stable foundation for the growth of its offshore plant business.
The latter, meanwhile, has mainly been focused on onshore hydrocarbon plants but says it will now be able to diversify into high value-added projects such as onshore LNG and offshore plants by securing SHI’s world-class offshore plant fabrication capabilities.
The merger is likely to give the pair a solid shot at becoming a global top-tier EPC (Engineering, Procurement and Construction) company. The stated goal is to grow into a total solution provider and increase their combined revenues of US $24.75 billion (in 2013) to $39.6 billion by 2020.
Recommended Reading
Eversource Energy Agrees to Sell Aquarion Water Co. in $2.4MM Deal
2025-01-28 - Eversource Energy plans to use the proceeds to pay down debt and reinvest into its core electric and natural gas businesses.
Tidewater Midstream Closes CA$24MM Alberta Roadway Sale
2025-03-25 - Tidewater Midstream and Infrastructure agreed to sell the roadway network, located around the Brazeau River Complex, to Canadian Resource Roadways for CA$24 million (US$16.8 million).
Golden Gate Capital Completes Stonehill Environmental Sale
2025-03-12 - Private equity firm Golden Gate Capital has completed the sale of energy infrastructure company Stonehill Environmental Partners for an undisclosed amount.
Woodside Divests Greater Angostura Assets to Perenco for $206MM
2025-03-28 - The Greater Angostura field produces approximately 12% of Trinidad and Tobago’s gas supply, said Woodside CEO Meg O’Neill in a press release.
Obsidian to Sell Cardium Assets to InPlay Oil for US$225MM
2025-02-19 - Calgary, Alberta-based Obsidian Energy is divesting operated assets in the Cardium to InPlay Oil for CA$320 million in cash, equity and asset interests. The company will retain its non-operated holdings in the Pembina Cardium Unit #11.