Hyundai Electronics Industries Co has announced it has completed the acquisition of LG Semicon Co Ltd following payment of $2.2bn to the LG conglomerate. A Hyundai spokesperson said that this means LG Semicon becomes a subsidiary of Hyundai Electronics with immediate effect, and the two firms will be integrated into a single company in October to form one of the world’s top three chip makers. He said the merger will help the new company enhance price competitiveness and reduce costs by as much as $6bn over the next five years.
The merger was one of the two major planks of the Big Deal business swaps forced on Korea’s ailing conglomerates by reforming President Kim Dae-jung, and will be a relief to the government after the collapse of the other involving a swap of Samsung Motors for Daewoo Electronics.
