Hanwha Galleria to merge with Hanwha Solutions
Department store chain Hanwha Galleria will merge with Hanwha Solutions with the goal to expand businesses and to raise management efficiency, the company announced in a regulatory filing on Tuesday.
Hanwha Galleria, 100 percent owned by Hanwha Solutions, said it expects to improve the company’s credit rating through the merger, which could raise the profitability of existing businesses by lowering purchasing cost. Hanwha Galleria was forced to shut its duty-free business last year after it suffered financially.
It believes Hanwha Solutions can benefit from its premium department store image, although a spokesperson for Hanwha Department Store was not sure what kind of synergy effects in business will be generated from the merger.
Hanwha Solutions was formed by the merger of Hanwha Chemical and Hanwha Q Cells & Advanced Materials in January. It is a solar power solutions provider.
Hanwha City Development will spin off its asset development business and merge with Hanwha Solutions.
The merger is scheduled to take place in April.
BY JIN MIN-JI [email@example.com]