Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

LG to spin off affiliates as break-up looms at S.Korean conglomerate

11/26/2020 | 05:08am EST

SEOUL, Nov 26 (Reuters) - South Korea's LG Corp said on Thursday it would spin off five affiliates into a new holding company next year, the latest reorganisation at one of South Korea's family-led conglomerates as they pass to a new generation of leaders.

Analysts expect the new holding firm, to be headed by Koo Bon-joon, a son of LG's founder, will eventually be separated from LG Corp.

LG Corp is led by Koo Bon-joon's nephew Koo Kwang-mo, who took over as LG Group chairman in 2018 after his father died.

Around the turn of the century, LG Group and other South Korean conglomerates broke up into several companies led by children of the groups' founders. Now the conglomerates are passing to the grandchildren of those founders, leading to a further round of restructuring deals.

"There are cases like LG that settle this quietly, but in many conglomerates, this has led to feuds," said Chung Sun-sup, chief executive of corporate research firm Chaebul.com.

LG Corp, the holding company of South Korea's fourth-largest conglomerate, said the spinoff would allow it to focus on existing core businesses such as electronics, chemicals and telecommunications services.

LG's affiliates make batteries and displays used in General Motors, Tesla and Apple products.

Affiliates that will be spun off in May 2021 include trading company LG International Corp, LG Hausys Ltd , maker of interior parts for housing and automobiles, display chip maker Silicon Works Co Ltd and unlisted chemical manufacturer LG MMA Corp, a regulatory filing said.

The existing LG holding firm will have assets of 9.8 trillion won ($8.85 billion), while the proposed new holding firm will have assets of 900 billion won, according to an LG Corp presentation. The latter is expected to be listed on the country's stock market in late May 2021.

($1 = 1,106.9300 won) (Reporting by Joyce Lee and Hyunjoo Jin; Editing by Ana Nicolaci da Costa and Mark Potter)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. 0.79% 137.995 Delayed Quote.-0.50%
HYUNDAI MOTOR COMPANY -2.84% 257000 End-of-day quote.33.85%
LG CHEM, LTD. -1.32% 975000 End-of-day quote.18.33%
LG CORP. -7.36% 107000 End-of-day quote.22.29%
LG ELECTRONICS INC. -4.05% 177500 End-of-day quote.31.48%
LG HAUSYS, LTD. -0.48% 82500 End-of-day quote.5.77%
LG INTERNATIONAL CORP. -4.17% 27550 End-of-day quote.11.54%
SAMSUNG ELECTRONICS CO., LTD. -1.48% 86800 End-of-day quote.7.16%
SILICON WORKS CO LTD End-of-day quote.
TESLA, INC. -0.99% 837 Delayed Quote.19.74%
Latest news "Economy & Forex"
01:17pPM Trudeau sees 'new era' of Canada-U.S. relations before first call with Biden
RE
01:08pCHINESE MADE WOOD MOLDINGS, MILLWORK HARM U.S. INDUSTRY : U.s. itc
RE
01:07pCanada's Trudeau says Pfizer CEO reassures on vaccine shortage, but challenges ahead
RE
01:01pU.S. drillers add oil and gas rigs for 9th week in a row -Baker Hughes
RE
12:56pOil falls on China's COVID-19 cases, high crude build
RE
12:48pOil falls on China's COVID-19 cases, high crude build
RE
12:48pFPS FOREIGN AFFAIRS FOREIGN TRADE AND DEVELOPMENT : Sophie Wilmès meets Turkish Foreign Minister Mevlüt Çavuşoğlu
PU
12:37pWall Street slips as IBM, Intel falter after results
RE
12:27pBIDEN’S NET ZERO PLAN WOULD REQUIRE MUCH DEEPER, FASTER DECARBONISATION : Kemp
RE
12:22pYellen wins unanimous Senate panel vote for Treasury despite Republican tax, debt concerns
RE
Latest news "Economy & Forex"