A new study shows that the number of cross-shareholding links at Samsung Group has decreased from ten to seven thanks to a recent merger between Samsung C&T and Cheil Industries.
 
Conglomerate tracker Chaebul.com said Monday that the merger between the two key affiliates in September reduced cross-shareholding at the country’s largest conglomerate.
 
Chaebul.com said the merger, however, created new cross-shareholding structures, under which Samsung C&T owns the group’s cash cow Samsung Electronics, suggesting that unraveling the new cross-shareholding link will cost at least two trillion won.
 
It said in order for the group to address new cross-shareholding structures, it will have to sell shares of Samsung C&T owned by Samsung Electro-Mechanics, Samsung SDI, and Samsung Fire & Marine Insurance.
 
The market tracker added that for the group to maintain heir-apparent Lee Jae-yong's control of the group after the hypothetical selling, the group will likely repurchase those Samsung C&T shares as treasury stock. It said the group will need at least two trillion won to repurchase the stock.
 
It is said that although the Fair Trade Commission thinks that the new Samsung Group cross-shareholding links do not constitute a violation of the law, it will give the group six months to unravel the new cross-shareholding links.
 
Meanwhile, Chaebul.com said the merger has strengthened the control of the group by Lee and his siblings, adding Lee now has 16-point-four percent of Samsung C&T’s shares.