MOSCOW (MRC) -- Samsung Heavy Industries has cancelled previously announced plans to merge with Samsung Heavy Industries, reported Bloomberg.
The two companies disclosed plans this past September to merge in order to create a "world-class total solution provider for shipbuilding and onshore and offshore services".
The merger was called off after investors asked the two companies to buy back the shares they held. Samsung Heavy Industries bought back 923.5 billion won of stock from shareholders opposed to the merger. Investors in Samsung Engineering returned 706.3 billion won in stock.
According to South Korean regulations, a company can call off a merger if the buyback requests reach a level that could increase its financial burden, the report said.
We remind that, as MRC wrote previously, Samsung Total Petrochemicals Co Ltd announced in late May that a small quantity of a petrochemical product leaked into the sea from a newly-built paraxylene plant in South Korea. The company has cleaned it up. About 2.4 kilolitres of para di ethyl benzene leaked while flowing to test pipelines of the new plant at the company's Daesan petrochemical complex. The leak occurred during testing of the new paraxylene plant, and the clean-up has already been completed.
MRC