New Values Expected
Samsung Electronics has completed its acquisition of Harman International Industries, a U.S. audio and automotive component supplier.
The company announced on March 11 (the 10th in local time) that it has completed its takeover of Harman after receiving approval from anti-monopoly regulatory bodies at 10 countries, including the U.S. The deal has been closed in four months after Samsung Electronics signed the takeover contract with Harman on November 14 last year. Harman obtained approval for the deal at the general stockholders' meeting on February 18.
Accordingly, Samsung Electronics stably made a big deal worth some 9 trillion won (US$7.83 billion) amid absence of Vice Chairman Lee Jae-yong who is arrested on bribery charges. The company has established a firm business foothold in the automotive electronics business which has been its strategic priority for future growth, becoming a global major automotive electronics company at one burst.
Harman stockholders will receive US$112 (128,688 won) per share in cash upon the closing of the deal, and Harman will wholly owned by Samsung Electronics through Samsung Electronics America (SEA). However, Harman will operate as a standalone Samsung subsidiary with current management, including CEO Dinesh Paliwal. Moreover, Samsung is also making no changes to Harman’s work force, headquarters and facilities, as well as all of its consumer and audio brands.
Sohn Young-kwon, President and Chief Strategy Officer of Samsung Electronics and Chairman of the Board at Harman, said, “Samsung Electronics and Harman will share technologies and experiences in various sectors, such as audio, home appliances and smartphones, to offer innovative and creative products and differentiated experience to customers. We will also lead technology innovation in the connected car sector, and become the best partner to automakers.”
Dinesh Paliwal, CEO of Harman said, “Samsung is the most ideal stockholder and partner which can share our commitment to our customers and our culture of speed and innovation. With the latest deal, we will provide new value and opportunities to all of shareholders, customers and employees, and accelerate growth in the automotive electronics and audio sectors to strengthen the global leadership.”