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LG Chem mulls merger with bio affiliate

All Headlines 14:38 September 06, 2016

SEOUL, Sept. 6 (Yonhap) -- LG Chem Ltd., South Korea's top chemicals firm, on Tuesday said it is considering a merger with its bio unit, LG Life Sciences Ltd., in a bid to diversify its business portfolio.

"We are reviewing an option to merge LG Life Sciences, but nothing has been decided yet," LG Chem, a chemical unit of South Korean conglomerate LG Group, said in a regulatory filing.

LG Chem mulls merger with bio affiliate - 1

Industry sources said the two firms' board of directors may decide on the issue later this week.

If the merger proceeds, LG Chem will have a business portfolio ranging from electric vehicle batteries and basic chemical materials to bio and industrial chemicals.

Earlier this month, LG Chem took over a local pesticides and fertilizer maker, Dongbu Farm Hannong, for 425 billion won (US$385 million).

The takeover push comes as LG Chem faces a growing challenge from Chinese rivals in its flagship chemicals and electric car battery businesses.

Dongbu Farm Hannong is the No. 1 crop protection and the top seed producer in the country, with shares of 27 percent and 19 percent, respectively.

sam@yna.co.kr
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