Samsung SDI is expected to spin off its chemical division into a separate company, tentatively called “SDI Chemical Corporation,” and sell it to Lotte Chemical.
The company officially announced on Nov. 13 that it will hold a shareholder meeting related to the spin off of its chemical unit into the separate company on Jan. 25 next year. Under the Big Deal agreement with Lotte on Oct. 30, the Lotte Group will acquire all of the stakes in SDI Chemical Corp., which is to be founded on Feb. 1 next year.
An official from Samsung SDI stated the purpose of the spin-off, saying, “We are seeking to advance the business structure by improving profitability of the chemical business division, specializing all business divisions and strengthening core abilities.”
Meanwhile, employees of Samsung SDI, which have the most employees and executives among Samsung Group’s three chemical subsidiaries that are scheduled to be taken over by Lotte, organized an emergency planning committee related to the acquisition on Nov. 11, raising the voice of opposition. It stands in contrast to the fact that Samsung Fine Chemicals formed a joint emergency planning committee between management and labor earlier and announced to accept the sale. However, there is an overriding prediction that it formed the emergency planning committee for negotiations.
Source: Business Korea
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