Samsung SDI Co., the world's top maker of TV displays and smartphone batteries, said Monday it has completed the procedures related to its merger with Cheil Industries Co., adding the new entity will kick off this week.
The announcement came about three months after Samsung SDI unveiled a plan to merge with the Samsung arm that produces electronic and chemical materials. The new entity, set to be launched on Tuesday, will maintain the same name.
Samsung SDI said the new entity is targeting sales of 29 trillion won (US$28.7 billion) by 2020, compared with last year's combined sales of 9.42 trillion won.
The new entity will have two divisions -- energy solution and materials, with each having their respective representatives. The former will focus on battery and system businesses, whereas the latter will roll out chemical and electronics material-related projects, it said.
The merger between key affiliates came as the group is accelerating its move to transform its business portfolio after its chairman's hospitalization.
Samsung Everland Inc., the de facto holding company of South Korea's No. 1 conglomerate, Samsung Group, is planning to make a debut on the local stock market in the first quarter of next year.
Samsung Electronics chairman Lee Kun-hee, who effectively heads the Samsung Group, was hospitalized in mid-May after suffering a heart attack and is recovering. Doctors say he responds at times but is still unable to communicate.