Samsung to buy Magneti Marelli from FCA; the deal is expected to worth in excess of three billion dollars
The automobile industry is growing in rapid pace and the breakthrough in the forthcoming future of electric vehicles and technologies have enabled more multinational companies to invest the sector. With Google and Apple developing products and services, Samsung is not holding back its tongue. It has bought a major stake in China, one of the fastest growing markets in the world, grown largest electric vehicle maker BYD with huge investments planned.
Amidst that, the Korean electronics conglomerate is in talks with Italian automotive parts supplier Magneti Marelli, currently owned by FCA (Fiat Chrysler Automobiles), for a potential buyout. According to Bloomberg’s report, the deal could worth in excess of $3 billion. The core areas Samsung seems to be showing interest are telematics, in-car entertainment and lighting but an entire purchase has not been ruled out of the equation either. If the deal comes into fruition, it would become the largest purchase ever done by Samsung outside Korea.
Also Read: Samsung Buys Stakes in BYD, China’s Largest EV Maker
FCA is branching out and establishing partnerships with technology firms as the element of electronics in the auto industry has increased day-on-day. It is in tie-up with Google for building autonomous driving technology in the new Pacific minivan as the first series of the model is expected to hit the road running towards the end of this year. Magneti Marelli’s business ranges from supplying instrument clusters and lighting for passengers cars to high-end electronics and parts production in motorsport arenas such as Formula One and MotoGP.
Founded in 1919, currently the Italian company has 38,000 workers worldwide and has worked with Ford and Microsoft in the past projects. The deal means Samsung’s business diversity grows largely and reduces the dependence on consumer electronic products such as smart phones and TVs. The largest supplier of memory chips and televisions has suffered lately due to less successful smartphones and therefore to catch up with main rival Apple it’s pondering over entering new industries.
Also Read: Apple Working On Autonomous Driving Technology Development
Samsung’s expertise in smartphone technology could lead to a major revolution in in-car connectivity and infotainment systems. FCA has aggressive plans set to double its global outcome in the next five years as the group’s CEO Sergio Marchionne making moves to meet the debts. While a recent partnership with General Motors failed, the selling of Magneti Marelli, which recently established a facility in India, comes into reality.
Source: Bloomberg