SEOUL, South Korea—A vote on combining companies in the Samsung Group empire is pitting its wealthy founding family against small shareholders and foreign investors in a rare challenge to the power of South Korea’s ubiquitous business conglomerates.
Shareholders at construction company Samsung C&T Corp. will vote Friday on the proposed takeover of it by another Samsung company, Cheil Industries Inc. The takeover is crucial for consolidating a once-in-a-generation leadership shift at Samsung Group, a vast conglomerate of 67 affiliated companies with smartphone powerhouse Samsung Electronics Co. at its center.
The business empire’s ailing patriarch Lee Kun-hee has been hospitalized since May last year and his son Lee Jae-yong is assuming a bigger leadership role but lacks a significant stake in flagship company Samsung Electronics.
