Shareholders of Samsung C&T approved an $8 billion merger deal with its sister company Cheil Industries Friday, a move expected to help Samsung heir apparent Lee Jay-yong tighten his grip on Samsung Group.

“With the approval, Cheil Industries and Samsung C&T gained a new drive for growth. We will reciprocate to expectations by maximizing synergy, which will be created by combining the two firms’ capabilities and enhancing the value of the merged company,” CEOs from the two firms said in a joint press release.

The controversial merger proposal won about 92 million of 132.4 million votes, or 69.53 percent, at a shareholder vote in Seoul. The merger needed a two-thirds majority to pass. Voter turnout reached 83.57 percent of the total shareholders.

The unexpected landslide victory dealt a blow to U.S. activist hedge fund Elliott Associates and its allies, which had vehemently opposed the combination.

The deal would allow Samsung heir apparent Lee Jay-yong to become the biggest shareholder in the merged company. It is widely regarded as a major step in Lee’s leadership succession from ailing Samsung chairman and his father Lee Kun-hee.

Earlier in the day, shareholders of Cheil Industries, Samsung’s chemical, fashion and leisure division, approved the merger plan at a swap ratio of 0.35 Cheil share for each C&T share.

The Samsung two units announced the merger plan on May 26, claiming that the merged company would become a new global enterprise with an annual revenue of 34 trillion won.

But the takeover plan had faced a major obstacle as U.S. activist fund Elliott, which holds 7.12 percent of C&T, and some other investors opposed the deal, saying it significantly undervalues the company and damages the interest of C&T shareholders.

Elliott had increased its pressure to block the shareholder vote while waging a legal battle with Samsung C&T.

“Elliott is disappointed that the takeover appears to have been approved against the wishes of so many independent shareholders, and reserves all options at its disposal,” the fund said in a press release.

On Thursday, the Seoul High Court turned down Elliott’s appeal on the injunction to block the deal. The firm had filed two suits -- one seeking to prevent the shareholders meeting from taking place and another to halt Samsung C&T’s sale of treasury stocks to a “friendly” shareholder, paint-maker KCC.

By Park Han-na(hnpark@heraldcorp.com)