[Asia Economy Reporter Seo So-jeong] KCC Glass, the No.1 glass company in Korea, and its affiliate Korea Auto Glass signed a merger agreement on the 9th.
KCC Glass and Korea Auto Glass announced that they will hold a general shareholders' meeting for the merger on the 29th of next month to obtain approval and plan to complete the process by December 1st.
KCC Glass will be the surviving entity, and Korea Auto Glass will be dissolved. The merger ratio is 1 to 0.4757 between KCC Glass and Korea Auto Glass.
The largest shareholder of the merged company will change from Chairman Chung Mong-jin of KCC to Chairman Chung Mong-ik of KCC Glass. The shareholding of major shareholders will change from 46.21% to 42.12%.
This merger is a step to organize the family business between brothers. The eldest son, Chairman Chung Mong-jin, became the largest shareholder of KCC, and Momentive, a silicone company acquired by KCC, became a subsidiary of KCC.
The second son, Chairman Chung Mong-ik, is the largest shareholder of the merged KCC Glass company. The youngest son, Chairman Chung Mong-yeol, manages KCC Construction, but the largest shareholder is the eldest son.
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