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President and CEO of Samsung Engineering Choong Heum Park. Image courtesy of Samsung Engineering.

South Korean shipbuilder Samsung Heavy Industries officially announced the acquisition of its sister company Samsung Engineering for $2.47 billion in shares Monday.

Samsung Heavy Industries will issue about 94 million new shares to Samsung Engineering, Reuters said Tuesday.

Samsung Heavy Industries will also issue new stocks so that Samsung Engineering shareholders can exchange their shares for Samsung Heavy Industries shares.

Each Samsung Engineering share will be exchanged for 2.36 shares of Samsung Heavy Industries.

The merger will allow Samsung Heavy Industries to provide design and engineering services as well as shipbuilding.

Samsung Heavy Industries will gain engineering, procurement and project management capabilities. The merger is also expected to help Samsung Heavy Industries grow its offshore plant fabrication business.

Samsung Engineering said the merger will allow it to diversify into high value-added projects such as onshore LNG and offshore plants.

“We will emerge as a total solution provider that caters to the diverse needs of our clients by combining the expertise and technologies we have each accumulated as individual companies in the plant, shipbuilding, and offshore industries,” president and CEO of Samsung Engineering Choong Heum Park said.

The companies plan to hold a special shareholders meeting on October 27, 2014 and complete the merger process on December 1, 2014.

The two companies had combined sales of about $20 billion in 2013.

Shares of both companies rose with the announcement.

The deal is part of a broader restructuring plan of the Samsung conglomerate.

A Samsung Group spokesman declined to comment on how the merger fits into the larger restructuring plan.