Wednesday 28 September 2016

Technology: Samsung eyeing Fiat assets

Published 04/08/2016 | 02:30

Samsung is particularly interested in Magneti Marell
Samsung is particularly interested in Magneti Marell

Samsung is in advanced talks to buy some or all of the operations of car-parts maker Magneti Marelli from Fiat Chrysler, according to people familiar with the matter.

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Samsung is particularly interested in Magneti Marelli's lighting, in-car entertainment and telematics business and could consider an acquisition of the whole company, the people said, asking not to be identified as the discussions are private.

The deal could be worth more than $3bn with a goal of closing this year, one of the people said, which would make it the company's biggest-ever acquisition outside South Korea. Fiat's shares rose the most since October 2014.

Vice chairman Lee Jae Yong (48) is reshaping South Korea's biggest company as he takes on more responsibilities once held by his father. He has sold off assets and narrowed the conglomerate's scope as he seeks to bounce back from a downturn in the smartphone business. A move into car components would help decrease Samsung's reliance on consumer electronics.

Lee, who has been a director of Fiat Chrysler's controlling shareholder Exor since 2012, would also position his company to benefit from the rising interest in cars from technology companies. Apple, Baidu and Google are pushing into cars, seeking to deploy their technology into new areas as cars become more advanced. Samsung had more than $70bn of cash and marketable securities as of March 31, according to data compiled by Bloomberg.

Samsung declined to comment in a statement. A Fiat Chrysler spokesman had no comment. (Bloomberg)

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