Samsung drops plans to sell its home network business

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Samsung SDS, the South Korean chaebol’s IT Solutions arm, was in talks with Ireland-based Allegion to sell off its home network business. However, the company has now announced that it has decided not to go forward with its decision, hinting at failed negotiations. Currently, Samsung Group companies Samsung Electronics (22.58 percent) and Samsung C&T (17.08 percent) as well as Lee Jae-yong (9.20 percent) own a majority of shares in the company.

Allegion had showed interest in acquiring Samsung’s home network business thinking about its brand name and sales channel in South Korea’s soaring home security market. The company’s smart door locks business makes up for less than 2 percent (US$143.10 million) of the revenue. Samsung SDS had been trying to sell off less profitable businesses under its umbrella such as logistics and home security amid the ongoing leadership shuffle at Samsung Group.

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