LG, decided to sell S&I Construction division to GS E&C

The construction business division of S&I Corporation, a subsidiary of LG Group specializing in building management, will be sold to GS E&C.

According to business circles on the 25th, LG Group is in negotiations to sell the entire construction business of S&I Corporation to GS E&C. The sale price is said to be around 300 billion won.

It is reported that GS E&C is planning to acquire more than 50% of S&I E&C's stake to secure management rights.

If this sale is successful, it will be a case of a mutual merger and acquisition (M&A) between LG Group and GS Group. At the time of the division in 2004, the two groups had signed an agreement not to enter the same business in charge of each group for the next five years, so there is almost no overlap in business.

Earlier this year, it was revealed that S&I had entrusted cleaning services to a company owned by a relative of LG Group Chairman Koo Kwang-mo, which sparked a controversy over driving the work. In the end, in order to resolve the controversy over work driving, LG decided to sell S&I by splitting it into a construction division and an FM division.

Reporter Lee Ji-sun stockmk2020@gmail.com