Anchor: Shareholders of Samsung C&T and Cheil Industries voted in favor of a merger between the two companies on Friday. The deal has strengthened Samsung Group heir apparent Lee Jae-yong's control over the business. The merger, however, is not without its detractors as a U.S. hedge fund is expected to keep up its fight to block the creation of the new entity.
Our Bae Joo-yon has more.
 
Report: A merger between Samsung C&T and Cheil Industries has been approved following shareholders’ meetings on Friday.
 
The shareholders of Cheil Industries, Samsung Group's de facto holding company controlled by heir apparent Lee Jae-yong, unilaterally approved the motion for the merger just ten minutes after its meeting began.
 
At Samsung C&T’s shareholders’ meeting, the deal was approved with those in favor representing 69-and-a-half percent, surpassing the required 55-point-seven percent.
 
The merger had been challenged by the U.S. hedge fund Elliott Associates, Samsung C&T's third-largest shareholder. It argued that the merger ratio of point-35 Cheil share for a Samsung C&T share was unfair. 
 
Despite 30-point-four percent opposing the merger, minority shareholders representing about 30 percent joined the roughly 40 percent the Samsung side had already secured.  
 
The two companies will merge from September retaining the name “Samsung C&T."
 
Due to Samsung Group’s circular shareholding structure, the newly-formed entity will act as the conglomerate’s de facto holding company as it will control Samsung Life Insurance and Samsung Electronics.
 
With Friday’s results, Lee Jae-yong now holds a 16-and-a-half percent stake in the merged entity, cementing his control of the sprawling business empire.
 
Though the merger has come to fruition, it has also received criticism for violating shareholders’ interests in the process of transferring management rights.
 
Elliott and its allies accused Samsung of pursuing the merger as part of efforts to transfer control over the stake of Samsung C&T in Samsung Electronics to Lee at a discounted price. 
 
The merger is also expected to lead Elliott to file a suit against the South Korean government through the World Bank’s International Center for Settlement of Investment Disputes.
Bae Joo-yon, KBS World Radio News.