Sam­sung to buy US auto parts sup­plier

The Myanmar Times - - International Business -

SAM­SUNG Elec­tron­ics is buy­ing US auto parts maker Har­man In­ter­na­tional In­dus­tries for US$8 bil­lion in a bid to en­ter the grow­ing mar­ket for au­to­mo­tive tech­nol­ogy to pro­duce “con­nected” cars.

The deal, the big­gest in the firm’s his­tory, will pro­vide a chance for the tech ti­tan to move past the Gal­axy Note 7 cri­sis that is ex­pected to cost it bil­lions of dol­lars as well as its cher­ished rep­u­ta­tion.

Board mem­bers of Sam­sung ap­proved the all-cash deal of the Con­necti­cut-based firm for US$112 a share, Sam­sung said. The deal will give the South Korean gi­ant a “sig­nif­i­cant pres­ence” in the global mar­ket for on­line-con­nected auto parts, the firm said in a state­ment.

“Har­man per­fectly com­ple­ments Sam­sung in terms of tech­nolo­gies, prod­ucts and so­lu­tions, and join­ing forces is an ex­ten­sion of the au­to­mo­tive strat­egy we have been pur­su­ing,” Sam­sung vice chair Kwon Oh-Hyun said.

“Har­man im­me­di­ately es­tab­lishes a strong foun­da­tion for Sam­sung to sig­nif­i­cantly grow our au­to­mo­tive plat­form.”

Har­man pro­duces high-end au­dio sys­tems and other in­ter­net-en­abled en­ter­tain­ment fea­tures for global car­mak­ers in­clud­ing Gen­eral Mo­tors and Fiat Chrysler.

Sam­sung Elec­tron­ics pro­duces a wide range of elec­tron­ics from smart­phones to home ap­pli­ances and semi­con­duc­tors.

The lat­est deal will of­fer the firm a chance to com­bine Har­man’s ex­per­tise in high-tech auto parts and its own mo­bile and semi­con­duc­tor tech­nolo­gies, Sam­sung said.

Sam­sung is hop­ing to com­plete the deal by the third quar­ter of 2017 after get­ting ap­provals from share­hold­ers and reg­u­la­tors.

The deal comes as the firm seeks new sources for growth be­yond its key busi­ness of mo­bile hand­sets as the mar­ket slows. –

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