Samsung C&T on Thursday denied rumors that it was in talks with paint group KCC to sell its residential construction business.

“We’re not considering any sale of our residential construction business to KCC or the (rumored) establishment of a joint venture with the firm,” the Seoul-based firm said in a regulatory filing.

KCC, which has a construction business affiliate KCC Engineering & Construction, also denied in a separate filing any talks with Samsung regarding the matters.

Rumors have been circulating that the Samsung Group affiliate is seeking to streamline its business portfolio through disposal of the retail construction unit. The company’s business interests span across construction, trade, fashion and leisure, following a merger last year between the old Samsung C&T (construction and trade) and Cheil Industries (fashion and leisure), both Samsung Group subsidiaries.

Samsung C&T may push for a sale now, or form a joint venture with KCC to take over the business from it and try a sale about three years later, the rumors said. 


KCC holds a 5.7 percent stake in Samsung C&T, after it acted as a white knight for the group last year when it faced a campaign from U.S. activist hedge fund Elliott Associates to block the merger.

By Lee Sun-young (milaya@heraldcorp.com)