Samsung units scrap US$2.5b merger on shareholder opposition

Seoul

SAMSUNG Heavy Industries scrapped on Wednesday a US$2.5 billion takeover of Samsung Engineering due to shareholder opposition, a setback for parent Samsung Group's restructuring plans ahead of a looming family succession.

Stocks in both firms have fallen since the takeover was announced in September as investors were not convinced of its benefits. The decline triggered shareholder demands for a share buyback worth US$1.5 billion, which was more than the firms were willing to pay to go ahead with the deal.