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The Korea Herald
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THE INVESTOR
November 21, 2024

Samsung

Samsung in final talks to acquire Fiat’s Magneti Marelli: report

  • PUBLISHED :April 11, 2017 - 10:50
  • UPDATED :April 11, 2017 - 10:53
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[THE INVESTOR] Samsung Electronics is in final talks with Fiat Chrysler Automobiles to acquire the Italian carmaker’s auto parts maker Magneti Marelli this year, Financial News reported on April 11.

Their possible tie-up was first reported in August last year but no progress seems to have been made as Samsung was involved in an influence-peddling scandal involving the impeached President Park Geun-hye and her close aides.




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“Vice Chairman Lee Jae-yong had already decided on the acquisition even before the presidential scandal,” an industry source was quoted saying in the report.

The Samsung heir has been a director of Fiat Chrysler’s holding company Exor since 2012. He couldn’t attend the annual board meeting this year after he was jailed in February on bribery charges in relation to the corruption scandal.

Amid Lee’s absence, Vice Chairman Kwon Oh-hyun, one of Samsung’s three co-CEOs, who is in charge of chips and other components business, has reportedly been leading the talks.

Samsung has been eyeing Magneti Marelli for its lighting, in-car entertainment and telematics technologies that are supplied to a slew of Fiat-owned brands such as Fiat, Chrysler and Jeep in the mass market and luxury brands such as Maserati and Alfa Romeo.

Samsung’s key affiliates such as Samsung Display and Samsung Electro-Mechanics have already partnered with Fiat on automotive displays and camera sensors

Sources said the key issue is Samsung’s buying price. Last year when they started related talks, Samsung is said to have offered 1 trillion won, while Fiat hoped for more than 3 trillion won.

“The two firms have also reached a tentative agreement on the price,” the source said. “Samsung has considered Magneti Marelli the best partner for business synergies with Harman.”

Last year Samsung acquired Harman, the US audio and in-car infotainment giant, for US$8 billion won, its biggest-ever purchase. The deal gained final approval from Harman shareholders in March.

By Lee Ji-yoon (jylee@heraldcorp.com)

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