South Korea: Samsung to buy automobile components manufacturer

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

Samsung is particularly interested in Magneti Marelli’s lighting, in-car entertainment and telematics business and may consider an acquisition of the whole company, sources said, asking not to be identified as the discussions are private. The deal could potentially be worth more than $3 billion with a goal of closing this year, said one of the sources, which would make it Samsung’s biggest-ever acquisition outside South Korea.

Magneti has years of experience in satellite navigation, connectivity, infotainment and telematics systems, which offer connectivity with external electronic devices. Telematic devices allow in-vehicle access to specific services, including insurance, car parks and anti-theft security. The acquisition would immediately give scale to Samsung’s automotive ambitions through established brands, plants and distribution. A deal could open up access for Samsung to supply some of Fiat’s luxury brands.

Full Content: Bloomberg

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