South Koreas Samsung Engineering is to merge with Samsung Heavy Industries in a deal that values one of the Middle Easts most active engineering, procurement and construction contractors at about $2.5bn.
The deal is being cited in Seoul as a means to create a world-class total solution provider for shipbuilding and onshore and offshore services. Samsung Engineering will continue to focus on its core business of building onshore process plants for the hydrocarbons, heavy industrial and power and water sectors, as well as grow its offshore capabilities.
Samsung Heavy Industries will continue to focus on shipbuilding, as well as offshore hydrocarbons, and onshore and offshore liquefied natural gas infrastructure.
The deal still needs to be ratified and a meeting is now planned for 27 October.