posted at 19:50
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Samsung sells defence, petrochemical units for $1.7 bn
The sale to the Hanwha conglomerate, which has major petrochemical holdings, is expected to be finalised in the first half of next year, Samsung said in a statement. The deal involves Samsung Electronics and other group affiliates selling their combined stakes in defence firm Samsung Techwin and Samsung General Chemicals. A 50-percent stake held by Samsung General Chemicals in its joint venture with the French energy giant Total, called Samsung Total, will also be sold to Hanwha, along with Samsung Techwin's 50-percent holding in a joint venture with French defence firm Thales. Samsung is comprised of dozens of units including Samsung Electronics, the world's top maker of mobile phones and TVs, which earn a collective revenue equal to around 20 percent of South Korea's annual economic output. "The deal shows Samsung is determined to shed non-core units deemed not competitive enough globally and to focus on key businesses like electronics, finances, construction and engineering," Kim said. Samsung Techwin, a developer of security equipment and aerospace technologies, reported a net profit of 133 billion won last year, but has amassed a net loss of 14.5 billion for the first three quarter of this year. Samsung's restructuring has not always been smooth sailing. Last week it had to scrap a merger between two major units - Samsung Heavy Industries and Samsung Engineering - due to the spiralling cost of buying back stock from shareholders opposed to the deal.

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