South Korea’s electronic giant Samsung has bought a company last year. The owner of the company was Jae Y. Lee and his two other sisters. Interestingly, it was not a normal merger we often see. Rather, Lee family circuitously made Samsung buy the company. So that, Lee family can control Samsung Group to a greater extent. The family was planning to make them more powerful in terms of making decisions in the corporation.
Eventually, with a view to establishing Lee family’s control over the company, Samsung sold its non-core asset during the merger. The blueprint is bigger. Recently, there is a discussion going on that Samsung may split itself into two. If the prospective separation happens, Lee family will have more authority over Samsung’s Smartphone business.
However, according to the current commercial circumstance of the company mobile business is the most pivotal department of Samsung Group. People knowledgeable in the matter are assuming that after the probable detachment, Lee family will solely handle the Smartphone department.
Elliott Management Corporation
On the same token, an American hedge fund firm, Elliott Management Corporation proposed a split in this year’s October. Moreover, Korea Exchange wrote a letter to the Samsung Group to learn about the veracity of the split. Nonetheless, Samsung Group did not publish any statements about the matter. As per the proposal, if the execution of the split comes to pass Samsung Group will operate its activities as two distinctive companies.