Samsung reportedly gives up on Magneti Marelli acquisition
We first heard about Samsung’s interest in auto parts giant Magneti Marelli earlier this year when it was reported that the Korean company was interested in acquiring this Fiat Chrysler subsidiary. Samsung interest was said to be in Magneti Marelli’s telematics, entertainment and lighting capabilities and was expected to pay as much as $3 billion for it. Then the Galaxy Note 7 happened and Samsung decided to put the deal on the back burner a couple of months ago.
Samsung has now put the Galaxy Note 7 behind it and made several major business decisions over the past couple of months, including but not limited to its acquisition of Harman International for $8 billion. According to a new report Samsung has decided to give up on acquiring Magneti Marelli as it wants to avoid an overlapping investment. “Samsung was going to take over Haman and Magneti Marelli at the same time, but eventually buying Haman and gave up buying Magneti Marelli,” an industry watcher is cited in the report as saying.
It’s also mentioned that talks between Samsung and Fiat Chrysler broke down over price as the latter was asking for too much in Samsung’s view and the company wasn’t willing to go that high. It eventually scrapped plans to acquire Magneti Marelli and decided to go after Harman with which it also got a portfolio of some of the most popular consumer audio brands in the world.
