Samsung Electronics is currently considering the acquisition of a portion of the automotive electronics business from Continental, a global automotive electronics company based in Germany. If the acquisition is finalized, it will mark Samsung’s first major merger and acquisition (M&A) in seven years since the acquisition of Harman in 2017.
According to industry sources on March 19, Samsung Electronics is conducting in-depth discussions about acquiring parts of Continental’s business, including Advanced Driver Assistance Systems (ADAS) and automotive displays. The review of this acquisition is being led by Son Young-kwon, chairman of the board of directors at Harman. Son was the president of the Samsung Strategy and Innovation Center (SSIC) at the time of Samsung’s acquisition of Harman and was a key figure in leading that deal.
Continental has been facing difficulties in securing profitability as the demand for future car-related parts has not met expectations, despite having invested significant manpower and costs into expanding its portfolio for future mobility businesses. Consequently, it has reportedly put various business divisions, including ADAS and displays, on the market.
Harman, an automotive business subsidiary of Samsung Electronics, internally sees the need to enhance its competitiveness in areas such as ADAS and has reportedly expressed a positive opinion on acquiring Continental’s automotive electronics business. While the decision on such a significant M&A deal rests with Samsung Electronics’ top executives, the possibility of the acquisition being finalized is notable given that the board members of Harman, who have been key figures in driving Samsung’s major investment decisions, are involved.
Even as Samsung Electronics’ M&A activities have nearly halted, Harman has remained active, acquiring several companies after becoming a subsidiary of Samsung. These acquisitions include Savari (automotive and Internet of Things) in 2021; Apostera (augmented reality) and CAARESYS (mobility) in 2022; and Flux (software) and Roon (audio platform) in 2023.
Founded in 1871, Continental ranks among the top 10 global automotive parts companies alongside Bosch, Denso, ZF, and Magna. It is also one of the top three companies in the global tire market based on sales revenue.