SEOUL South Korean chemicals and battery maker LG Chem (051910.KS) on Monday said it plans to acquire pharmaceutical affiliate LG Life Sciences (068870.KS) for about 1.1 trillion won ($989.56 million) to make its bio business a new growth engine.
LG Life Sciences investors will receive about 0.26 of a common share in LG Chem for each share they own and about 0.25 of a preferred share in LG Chem, the two companies said in a regulatory filing.
LG Chem said it would complete a merger by Jan. 1.
In January, LG Chem agreed to buy seeds, pesticides and fertilisers maker Dongbu Farm Hannong for 515.2 billion won.
The company said it would achieve a sales of 5 trillion won from its bio business by 2025.
($1 = 1,111.6000 won)
(Reporting by Hyunjoo Jin and Se Young Lee; Editing by Stephen Coates)