A South Korean court has ruled that Samsung C&T and Cheil Industries can hold a shareholder vote on their $8 billion merger on July 17.
The Seoul Central District Court’s decision came after Elliott Associates’ request to block the voting session.
Elliott Associates has a 7.1% stake in Samsung C&T, and said the deal must be called off because it undervalues Samsung C&T.
The court said the deal does not represent an illegal transfer of value to investors.
Samsung C&T said in a statement: "The court’s ruling validates the fairness of the merger ratio and affirms that legal requirements have been met."
The merger was approved by both companies on May 26 with the final acquisition by Cheil to be consumed on September 1.
The total amount of annual revenue of the merged company is forecasted to reach over £34 billion in 2020 from £19 billion in 2014.
Cheil Industries CEO Yoon Joo Hwa said "The proposed merger is a strategic choice to secure the company’s core competency in order to become a global leading company. We will become the top class global company, offering ‘Total Premier Service’ across the full span of human life."
Samsung C&T CEO Chi Hun Choi said "We plan to secure growth momentum by diversifying business portfolio, including fashion and biotech, and integrate the competencies of Samsung C&T’s global operation and Cheil Industries’ specialties in order to strengthen our competitiveness further."
