Samsung Electronics is considering buying some or all of the Fiat Chrysler Automobiles’ NV (NYSE:FCAU) operations. The two are in advanced talks which if they are agreeable will result into the acquiring of the auto maker’s MagnetiMarelli’s lighting, in-car entertainment and telematics business. Reliable sources revealed that the acquisition whose closure is expected to take place later in the year would be worth more than $3 billion.
It is not the first time that MagnetiMarelli is getting interested buyers. A report alleges that former Fiat CEO Sergio Marchionne was earlier involved in talks with Audi. Any positive conclusion of the negotiations would have led to the sale of not only the parts unit but also Fiat’s Pomiglianod’Arco factory. Apparently, it is not only the Korean electronics giant that has shown interest in the automotive industry. Alphabet Inc (NASDAQ:GOOGL) Google and Apple Inc. (NASDAQ:AAPL) are also eyeing the potential technology growth sector.
Samsung Electronics and Fiat will both gain. How?
The deal if well concluded will result in being the biggest-ever to have taken place on the outskirts of South Korea. It is a move that would diminish Samsung’s dependence on consumer electronics. 48-year-old Vice Chairman Lee Jae Yong who is behind the rejuvenated company seems committed to giving it a new phase given that he has taken up more responsibilities. He would also lead the company into benefiting from the rising interest in cars from technology companies. Nevertheless, it remains the world’s biggest producer of memory chips and televisions.
Fiat’s benefit was that of rising shares to as much as 9.2% in the US to 6.64% in New York. Sogefi SpA (BIT:SO), another Italian parts maker, is also a beneficiary of the talks after its shares got a gain of 4.7% to 1.55 euros.
Nevertheless, Samsung may also gain entry into supplying some of Fiat’s luxury brands. As if this is not enough it is already having a slice of surging sales of electric cars having bought Samsung’s Shanghai unit for 3 billion-yuan