The new Samsung C&T, the construction and trading arm of Samsung Group, was officially launched on Tuesday under a collective leadership led by four top executives.

The new entity, given outright shareholder approval on July 17 to merge with Cheil Industries, is expected to serve as the group’s de facto holding company, with estimated sales of 60 trillion won ($50.9 billion) by 2020.

Market insiders believe the new Samsung C&T will be one of the group’s core affiliates alongside Samsung Electronics, focusing on the bio industry as a future growth engine.

In July, shareholders of Samsung C&T voted for the takeover deal by Cheil Industries, the apparel and resort unit, for 8.9 trillion won, after more than a month of fierce conflict with U.S. hedge fund Elliott Associates and minority shareholders.

Samsung won the lawsuits filed by Elliott, with Seoul courts recognizing the merger’s legitimacy.

For a smooth transition, Samsung C&T announced that four chiefs would temporarily co-run the merged entity -- Yoon Joo-hwa in charge of the fashion business, Kim Bong-yung of resorts, Choi Chi-hun of construction and Kim Shin of trading.

The company said it will hold a board of directors meeting on Wednesday to appoint the chairman of the board and have a closed-door inauguration ceremony.

The merger is expected to strengthen Samsung Group heir apparent Lee Jae-yong’s grip over the nation’s top conglomerate, which is reportedly pushing ahead with a group-wide reorganization.

On Friday, Samsung SDI said it would buy the cell material division of Samsung Fine Chemicals for 19 billion won, powering up the battery business. SDI will acquire the research and development facility, patent rights, employees and the 58 percent stake in STM.

It has been speculated that Samsung C&T’s construction division will also undergo restructuring to avoid overlap in the merged entity’s businesses, but the company denied the speculations.

Local reports said the developments reflect Samsung Electronics vice chairman Lee’s will to focus investment on core businesses while shedding noncore businesses.

Lee, who had maintained a low profile, has made some unusual moves ahead of the recent merger deal.

After making his public debut in a June news conference over the outbreak of the Middle East respiratory syndrome, Lee met with executives and staff members at its creative innovation center in North Gyeongsang Province in July.

Last month, he also met Thomas Bach, president of the International Olympic Committee, to vow full support for the 2018 PyeongChang Winter Games.

By Suk Gee-hyun (monicasuk@heraldcorp.com)