Another Variable
On Jan. 15, 650 members of the Samsung Total labor union staged a rally at the Daesan Plant located in South Chungcheong Province in opposition to the Hanwha Group’s acquisition of their company.
French oil giant Total, which represents 50 percent of Samsung Total, is also raising objections to the big deal between the Samsung and Hanwha Groups. The other 50 percent of shares are owned by Samsung General Chemicals.
The Hanwha Group is planning to exercise its management rights in Samsung Total as well by acquiring Samsung General Chemicals, and has conducted due diligence to this end since last month. It was going to have interviews with Samsung Total’s senior executives this week, too. However, Total put a brake on the plan and Hanwha had to put off the interviews.
Industry insiders are regarding this situation as a kind of tug of war over the dominant position in its co-management with Hanwha.
At present, four executive members from Total are staying in Samsung Total, one being senior vice president Francis Raatz and the others being a CFO and senior managing directors. They have been rather low-profile with regard to the management of Samsung Total, focused mostly on the cash flow into and out of the company.
“Even if the Hanwha Group acquires Samsung’s shares in Samsung Total, Total maintains its rights as an entity in possession of 50 percent shares, and thus Hanwha cannot have a superior position in decision-making processes,” Total Vice President Jean-Jacques Mosconi mentioned on January 7 at Samsung Total’s Daesan Plant.