Not-abandoned Project
Samsung Electronics is still in talks over the acquisition of Magneti Marelli, a component subsidiary of Italian automaker Fiat Chrysler Automobiles (FCA).
According to electronics industry sources on March 1, Samsung Electronics, which reportedly stopped negotiations with FCA on the takeover of Magneti Marelli after it acquired Harman International at the fourth quarter last year, is still in talks over the deal.
An official from the industry said, “As Samsung Electronics Vice Chairman Lee Jae-yong is a board member of Exor, a holding company of FCA, the two companies maintain an amicable relationship. The two are narrowing the gap little by little.”
He also added, “Samsung Electronics is planning to sweep shares in the automotive electronics component market. The acquition of Harman is just the beginning of its plan and the company can embrace more companies if it is necessary.”
Samsung Electronics and FCA are reportedly engaging in a tug-of-war on the acquisition price. Samsung Electronics offered 1 trillion won (US$884.96 million) for Magneti Marelli, but FCA asked 3 trillion won (US$2.65 billion). However, the negotiations for the deal were pushed back on the priority list after Samsung Electronics took over Harman and Choi Soon-sil gate broke out right away. As the special prosecutor ended its official investigation on the 1st as scheduled, Samsung is planning to fill up the absence of the management at a rapid pace.
Meanwhile, Magneti Marelli designs and produces infotainment, telematics, lighting and suspension systems and it is one of the world's top 30 car components producers.