Under the existing antitrust rules conglomerates are prohibited from creating new circular ownership among affiliated companies through equity investments. Therefore the FTC has said that Samsung SDI, the battery unit of the conglomerate, should reduce its shareholding in Samsung C&T by 5 million or 2.6% shares by March 1. Based on Friday's closing prices the approximate value of these shares is about $622 million. Samsung has said that it's not going to appeal the FTC's decision, instead it's going to ask the antitrust watchdog for a grace period considering the market impact of this decision. The merger between Samsung C&T and Cheil Industries was a part of the company's efforts to further strengthen the owning family's control over the group, it made heir apparent Lee Jae-young the largest shareholder of Samsung C&T with a 16.5% share with other family members and investors holding a combined stake of over 50%.
