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


Twelve-year sentence for Samsung's vice-president?

07/08/2017

Prosecutors in the Samsung corruption case have demanded a 12-year sentence for its former vice-president and de facto CEO of the South Korean company at the time, Jay Y. Lee, who has been charged with bribery and embezzlement.

Apple sales drop smaller than expected

02/08/2017

Apple has sold more iPhones in the third quarter of its fiscal year than it did last year, which was a surprisingly more positive feat than analysts had expected. Compared to the second quarter, there was further decline though.

Ceconomy (Media Markt) acquires quarter of Fnac Darty

26/07/2017

Ceconomy, Metro Group’s former consumer electronics division containing Media Markt and Saturn, acquired 24.3 % of Fnac Darty’s shares from the Pinault family.

 Blokker adds household appliance specialist AO.nl to Nextail

21/07/2017

Blokker Holding’s online organization, Nextail, will enter a strategic collaboration with online household appliance specialist AO.nl’s Dutch division.

Duo will lead Fnac Darty

17/07/2017

The Fnac Darty group is preparing for life after Alexandre Bompard, since its current CEO will start working for Carrefour tomorrow. He may actually be succeeded by a duo.

Samsung's new flagship yields record profit

07/07/2017

Korean technology company Samsung published record results for its past quarter thanks to its successful Galaxy S8 launch. The flagship product and an increased chip demand helped the company soar.

Back to top