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Samsung Group’s Shipbuilding, Engineering Merger Scrapped

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Samsung Group scrapped a 2.5 trillion won ($2.3 billion) merger of its shipbuilding and engineering units that would have helped them compete better against European rivals. Shares of both companies fell.

Samsung Heavy Industries Co., the world’s third-largest maker of ships, called off the merger with Samsung Engineering Co. after some investors asked the companies to buy back the shares they held, the two companies said in statements today. According to regulations in South Korea, a company can call off a merger should buyback requests reach a level that could increase its financial burden.