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  • June 2017
  • Teaching Note
  • HBS Case Collection

Succession Planning at Samsung: The Merger Formula of Cheil Industries and Samsung C&T

By: Gwen Yu
  • Format:Print
  • | Language:English
  • | Pages:7
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Abstract

A merger deal of two Samsung group companies becomes a center of a corruption scandal. The merger of Cheil Industries and Samsung C&T was seen as a crucial step to transfer power to Lee Jae Yong, the heir of Samsung group. The deal was criticized to purposefully undervalue Samsung C&T’s stocks to transfer wealth to Lee at the expense of the shareholders. Elliott Management, a New York–based hedge fund, launches a campaign urging shareholders to vote against the merger. However, the National Pension Service (NPS)—a major shareholder of Samsung C&T—votes in favor of the deal. The case sheds light on the political ties between the government and the family controlled conglomerates in South Korea, which have powered the country’s economy for decades.

Keywords

Merger; Mergers and Acquisitions; Crime and Corruption; Business and Government Relations; South Korea

Citation

Yu, Gwen. "Succession Planning at Samsung: The Merger Formula of Cheil Industries and Samsung C&T." Harvard Business School Teaching Note 117-069, June 2017.
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Related Work

    • June 2017
    • Faculty Research

    Succession Planning at Samsung: The Merger Formula of Cheil Industries and Samsung C&T

    By: Gwen Yu
Related Work
  • Succession Planning at Samsung: The Merger Formula of Cheil Industries and Samsung C&T By: Gwen Yu
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