Samsung is reportedly in advanced talks to buy Magneti Marelli, the auto components manufacturing arm of Fiat Chrysler Automobiles.
According to a report from Bloomberg, South Korean-based Samsung is said to be in talks with the Italian luxury automaker to acquire Fiat’s subsidiary and auto-parts maker Magneti Marelli, which specialises in developing and manufacturing high-end automotive parts.
Samsung is said to be particularly interested in Magneti Marelli’s lighting, in car entertainment and telematics capabilities.
The proposed deal is reportedly worth $3bn, which would make it Samsung’s biggest ever acquisition outside of South Korea.
Potential Samsung deals sees Fiat stocks climb
The potential deal has already made a financial impact with shares in Fiat Chrysler Automobiles rising 9% last Wednesday in reaction to the proposed deal; the biggest single increase in Fiat’s share price since October 2014.
The rise in stock price comes after a period of poor stock market results for Fiat, with the Italian automaker’s shares among the worst performers of any European automakers this year.
Acquiring Magneti Marelli would provide a boost to Samsung’s automotive ambitions through the utilisation of the established Fiat brand.
The potential deal could open up access for Samsung to supply some of Fiat’s luxury cars, which include Maserati, as well as providing access one of Europe’s most prestigious car companies and the seventh-largest carmaker in the world.
The interest in Fiat’s auto making capabilities follows Samsung’s recent collaboration with German automakers such as BMW to develop smart futuristic automobiles.
Samsung also recently launched its Samsung Connect Auto which offers an affordable connected car solution, as well as making a separate race track to test its autonomous cars while also collaborating with SAP and SEAT to develop future projects for connected cars.
Samsung and Magneti Marelli have teamed up previously in 2009 to develop display products for entertainment, information and navigation. The new potential deal between the two companies would mean that Samsung could offer new sources of lighting and also bendable dashboards to Fiat’s luxury car drivers.