Samsung shareholders approve controversial merger

Samsung shareholders approve controversial merger

A majority of Samsung's shareholders has approved a shareholders' merger within the company. The Lee family will now gain increased control over the Korean electronics company.

(Too) much power for Lee family

The Lee family has dominated Samsung's policies for three generations, but now that Samsung Construction & Trading and Lee-owned Cheil Industries have merged, Lee Jae-yong's control over Samsung grows. He is Samsung Electronics' vice-prsident and son of Lee Kun-hee, Samsung's president who has been in hospital since May 2014 after a heart attack.

 

The merger was approved with a 69.5 % majority, which is just about enough to get past the two thirds majority needed. Particularly the American Elliott Associated opposed the merger as it feels the Lee family will gain too much control. On top of that, Lee Jae-yong is a newcomer and no one knows whether he has the knowledge and the capabilities to run a company like Samsung the way it should.

 

Within Samsung's ranks, plenty of people tried to get the merger approved: all Korean employees were given shareholder information, so that they could harass them with the merger's benefits.  The merger has given Lee Jae-yong 4 % of Samsung Electronics' shares, the division that represents two thirds of the company's turnover. The entire Samsung group has about 70 companies.

Questions or comments? Please feel free to contact the editors


Media Saturn launches a first, fully virtual shopping world

21/11/2017

Saturn customers can use their own VR goggles to see products in two virtual environments. It is not yet possible to actually buy something in VR however.

Pieter Haas, CEO Ceconomy: "We sell the consumer a digital life"

03/11/2017

MediaMarkt’s parent company, Ceconomy, has the key to consolidate the European electronics industry even more. The retailer will sell services and solutions: “We help people make the right decisions.”

Ceconomy continues growth in transitional year

26/10/2017

Ceconomy, a former part of German Metro Group, achieved a 4.6 % fourth quarter turnover increase to 5.264 billion euro. Media Market’s parent company mainly made strides online.

Fnac Darty grew 6 % in third quarter

20/10/2017

Fnac Darty has raised its third quarter turnover by 6 % to 1.792 billion euro, with growth in the Benelux as well. The company also revealed the integration of both companies is ahead of schedule.

Samsung CEO resigns despite record profit

13/10/2017

South Korean Samsung has managed a record profit in its past quarter thanks to strong chip sales. However, one of its three CEO’s still decided to resign.

Fnac-Darty introduces new board

12/10/2017

A little more than a year after Fnac and Darty merged and several months after CEO Alexandre Bompard suddenly moved to Carrefour, the French entertainment and electronics group Fnac-Darty introduced its new board.

Back to top