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Samsung Group to dispose of chemical, defense units

(Xinhua) Updated: 2014-11-26 18:35

SEOUL - Samsung Group, South Korea's largest family-run conglomerate, said Wednesday that it will dispose of stakes in its four chemical and defense affiliates to Hanwha group, a South Korean conglomerate that has been doing business in the defense sector for more than six decades.

Samsung Group's six affiliates, including Samsung Electronics, will sell a 32.4 percent stake in the group's defense unit Samsung Techwin to Hanwha Corp. for 840 billion won (760 million U.S. dollars).

As Samsung Techwin has a 50 percent stake in Samsung Thales, Hanwha Corp. will half-own the maker of defense tech equipments along with the France-based Thales Group.

A 57.6 percent stake in the group's chemical unit Samsung General Chemicals will be sold to Hanwha Chemical and Hanwha Energy, chemical units of Hanwha Group, for 1.06 trillion won.

The Hanwha Group will also get a 50 percent stake in Samsung Total, which was half-owned by Samsung General Chemicals along with the France-based Total S.A..

Samsung's disposal seemed to come as part of efforts to succeed the management power from Lee Kun-hee, Samsung Electronics chairman who has been hospitalized since May, to his only son Lee Jae Yong, vice chairman of the world's largest maker of smartphones, chips and display panels.

Samsung Heavy Industries and Samsung Engineering, the group's shipbuilding and engineering units, called off a plan last week to merge with each other as shareholders and asked the companies to buy back massive shares.

Hanwha Group, founded in 1952 as Korea Explosives, has been doing defense business for more than six decades. The acquisition is expected to boost the group's chemical and defense operations.

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