Shareholders of Cheil Industries Inc. voted for a proposed merger with its sister company Samsung C&T Corp. on Friday, a move aimed at clearing the way for a once-in-a-generation leadership transfer at South Korea's top conglomerate.

In a unanimous vote, shareholders of the de facto holding company of Samsung Group gave the go-ahead for the 8.9 trillion-won ($ 7.9 billion) all-stock deal to take over Samsung C&T, the construction unit of the group.

Samsung C&T also began its shareholder meeting at a separate location, with the proposal to be put to a vote.

The merger is also widely seen as aimed at paving the way for the transfer of power from hospitalized tycoon Lee Kun-hee, South Korea's richest man, to his only son, Jay-yong.

If the merger is completed, Jay-yong will emerge as the biggest shareholder of the merged entity with a 16.5 percent stake, strengthening his grip on the sprawling business empire. (Yonhap)