An announcement from Samsung Electronics reveals that they have no plans of merger with Samsung SDS at least presently.
Rumours were on the air for some times that there would be a merger of Samsung Electronics with Samsung SDS. But the announcement today put to rest all such speculations though experts consider it as an interim lull.
It was thought that the current change of scenario at the helms of affairs with Samsung’s elderly Chief being succeeded by his son could bring up such merger as a step to continue the process of succession unabated.
“The management wants me to express clearly that we do not have a plan to merge with SDS,” said Robert Yi, the head of investor relations of Samsung Electronics. He was addressing an audience at an event organized by the company in Seoul.
In recent times several steps have been taken by Samsung to restructure the widespread business empire. The attempt has been in the process for the last one year and more. The process is a step towards gradual transfer of powers from the patriarch of the family Lee Kun Hee to his three children in the line for succession.
The process started after Hee was hospitalized consequent upon a heart attack in May 2014 and the company was looking for someone to carry on the reigns subsequent to transfer of control. While the process of restructuring had actually started much earlier, the incident gave impetus to the efforts of the company.
Samsung Electronics continues to be the crown jewel for the company and merger with SDS could give the heir apparent Jay Y Lee as well as his sisters share in the Samsung Electronics. They are already share holders in Samsung SDS.
Some people still do not believe that Samsung does not have such plans and the heir apparent Yi also understands this. The announcement is an attempt to convey the thought of Samsung management to people he said.