Shareholders of Harman OKs merger with Samsung Electronics

SEOUL, Feb. 18 (Yonhap) -- Shareholders of U.S. automotive electronics firm Harman International Industries Inc. have approved a merger with Samsung Electronics Co., according to the U.S. regulator.

The U.S. Securities and Exchange Commission said 70.78 percent of the shareholders of Harman International Industries Inc. attended an extraordinary shareholders' meeting in Stamford on Friday. Among them, 67 percent voted in favor of the merger worth US$8 billion.

Harman took the No. 1 spot in global markets for in-car entertainment systems and car audio equipment. The U.S. company also ranked second in the global telematics market.

Samsung needs to gain regulatory approval from South Korea, the United States, the European Union and China.

The deal, which would mark the largest-ever buyout by a South Korean company, was the first major acquisition by Samsung since the company's heir apparent, Vice Chairman Lee Jae-yong, joined the board of the electronics giant last year.

Earlier this week, Lee was arrested on charges of bribery in connection with a high-profile corruption scandal surrounding President Park Geun-hye and her confidante Choi Soon-sil.

Prosecutors have suspected that Lee gave or promised some 43 billion won (US$36.3 million) worth of bribes to Choi in exchange for the government's backing of a merger of two Samsung affiliates in 2015.

The business arrangement was seen as critical for the smooth management succession of the group from ailing Samsung Electronics Chairman Lee Kun-hee to his only son Jae-yong.

entropy@yna.co.kr
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