Seoul: Tech giant Samsung Electronics Co Ltd said on Wednesday it has no plans to merge with affiliate Samsung SDS Co Ltd, in an attempt to quell speculation that such a deal is in the works to help Samsung Group`s succession process.
"The management wants me to express clearly that we do not have a plan to merge with SDS," Robert Yi, Samsung Electronics` head of investor relations, said at a company event in Seoul.
Samsung Group has been restructuring its sprawling business empire over the past year to secure a stable transfer of control from the founding family patriarch Lee Kun-hee to his three children. The elder Lee remains hospitalised following a May 2014 heart attack, adding urgency to these efforts.
Some investors and analysts have said Samsung Electronics and Samsung SDS, an IT services company, could merge soon. Such a deal would give Samsung Group heir apparent Jay Y. Lee and his sisters, major shareholders in SDS, shares in Samsung Electronics, the crown jewel of South Korea`s top conglomerate.
"This announcement may not remove all the rumours and hearsayers in the market but I hope it conveys the management`s thoughts on this issue," Yi said.
Samsung`s de facto holding firm, Cheil Industries Inc, and Samsung C&T Corp announced in late-May an all-stock merger, putting stakes in key manufacturing and financial arms in a single vehicle under the Lee heirs` control.
Investors expect more group consolidation moves to be announced in the near term, though Samsung Group has not disclosed its restructuring plans.