MOSCOW (MRC) -- Lotte Chemical Corp. has finalized the takeover of Samsung Group’s chemical units.The company said that it paid for money to acquire Samsung SDI Chemical on Apr. 29 and completed the acquisition of Samsung Group’s chemical businesses in about six months after the announcement of "Big Deal" in October 2015, reported BusinessKorea.
Samsung Fine Chemicals, which was completely taken over by Lotte in Feb., changed its name to Lotte Fine Chemical, while SDI Chemical, which completed the acquisition process on the 29th, changed its name to Lotte Advanced Materials through the general meeting of stockholders.
Lee Ja-hyeong, former head of the production division of at Lotte Chemical, which is formerly known as Honam Petrochemical Corp., is appointed as new CEO of Lotte Advanced Materials. Lotte Fine Chemical CEO Oh Sung-yup, who was named in Feb., joined Lotte Chemical in 1985, worked at the finance team and served as the head of the planning division and business management division at the company.
Lotte Chemical CEO and President Huh Soo-young said, "As the company successfully completed the takeover of Samsung chemical units, it has gained a foothold to jump into a global leading chemical company. Lotte Chemical has the world class technology in raw materials that is used to produce synthetic resins. So, the latest acquisition will help the company expand high value added product lineups through the vertical integration in the petrochemical sector."
Combining 11.7 trillion won (USD10.26 billion) of Lotte Chemical’s consolidated sales last year and 4 trillion won (USD3.51 billion) of acquired company, its sales in the petrochemical division will reach 16 trillion won (USD14.03 billion.)
As MRC wrote previously, in November 2014, South Korea's Samsung Group said it is selling stakes in four chemical and defence firms for 1.9 trillion won (USD1.72 billion) to Hanwha Group. In March 2015, South Korea's Fair Trade Commission (KFTC) gave conditional approval to Hanwha's proposed acquisition of Samsung General Chemicals.
Established in 1976, Lotte Chemical has been solidifyng its position by localizing cutting-edge petrochemical technologies. Among the high-quality products produced by Lotte Chemical through its efficient processes are ethylene, HDPE, LDPE, LLDPE, PP, functional resin, EG, SM, PIA, PET, etc. Lotte Chemical’s products are being distributed to 152 countries around the world. With the acquisition of Pakistan’s PTA in 2009, Artenius in the UK in 2010 and Titan Chemical Corp., Lotte Chemical is now able to efficiently supply excellent products to an increasing number of countries. The company is further accelerating its efforts to strengthen its global competitiveness by establishing overseas branches in Hong Kong, Russia, and USA, along with the sales corporation in China for active sales activities both in domestic and abroad.