Chemical Synergy
The Samsung Group embarked on the finalization of its business organization in the petrochemical area.
On Aug. 28, Samsung SDI announced that it will acquire the lithium-ion battery material business of Samsung Fine Chemicals (SFC) for 18.7 billion won (US$15.8 million). SFC, in turn, decided to buy Samsung SDI's 29.2 percent stake in Samsung BP Chemicals for 81.9 billion won (US$69.2 million).
This transaction can be interpreted as part of the Samsung Group's efforts to reorganize its remaining petrochemical affiliates after handing over Samsung Total Petrochemicals and Samsung General Chemicals to the Hanwha Group last spring. Samsung SDI will enhance the competitiveness of the lithium-ion battery material business, and SFC in the field of high-value-added fine chemicals.
This acquisition is considered to have laid the groundwork for Samsung SDI to bolster its secondary cell business, a new growth engine. SFC, on the other hand, is expected to be reorganized as a manufacturer of high-value-added fine chemicals by strengthening its base technology in the fine chemicals area and creating synergy between business units.
As a result, SFC's stake in Samsung BP Chemicals will increase from 19.8 percent to 49 percent. An official at SFC said, "Through this deal, it will be possible for our company to further expand the high-value-added fine chemicals business, using core intermediate products of Samsung BP Chemicals."
The company plans to strengthen and expand the eco-friendly green material business and the high-value-added fine chemicals business like cellulose derivatives and epichlorohydrin, using its investment capability that was secured through this business transfer and the disposal of assets.