Samsung SDI Co., the world's top maker of TV displays and smartphone batteries, said Monday it will merge with Cheil Industries Co., a Samsung affiliate that produces electronic chemical materials.

The arrangement is for Samsung SDI to absorb Cheil into its fold, with the merger swap ratio set at 1-to-0.44.

The deal was slated to be approved at the shareholders' meeting on May 30, and all procedures for the merger will be completed by July 1, the company said. Samsung SDI plans to keep its corporate name after the merger.

Samsung SDI's market capitalization is estimated to increase to 10 trillion won ($9.37 billion) through the acquisition, with 14,000 employees and a net asset of 15 trillion won, industry watchers said.

The company said it aims to beef up its business portfolio through synergistic cooperation between its technological capability in batteries and display sectors and Cheil's materials businesses.

The merged company will seek to boost its annual sales to 29 trillion won by 2020, it added. (Yonhap)