As part of its efforts to be more involved in the automotive world, Samsung revealed it was in talks to buy a stake in China’s BYD.
Samsung has decided quite late to take advantage of the huge business potential offered by the automotive industry, unlike its technology rivals, such as Panasonic or LG. Therefore, the company decided in December 2015 to form a special unit to find new auto-related partnerships for the group’s affiliates, such as the battery maker Samsung SDI and software services provider Samsung SDS in order to boost its earnings. Last week, the South Korean electronics giant confirmed it has started negotiations for buying a stake in China’s electric automaker BYD.
Even if it did not say how much it wanted to invest or how big a holding it would take, the Korea Economic Daily reported that it agreed to acquire shares worth 3 billion yuan (448 million dollars) in BYD, which would give Samsung a 4 percent stake in the automaker.
“The latest investment aims at strengthening electric vehicle parts and smartphone parts businesses for the two companies,” Samsung said in a statement. “We plan to discuss cooperation in various businesses going forward.”
Warren Buffet-backed BYD is China’s largest producer of electric and plug-in hybrid cars and has a wider range of electric- related businesses, as it makes anything from traditional cars, electric buses to mobile-phone batteries. It sold last year around 58,000 cars and it is expected to deliver up to 150,000 units in 2016.