Vice Chairman Han talks about M&A
South Korea’s Samsung Electronics is striving to take over a company or companies, according to the tech giant’s Vice Chairman Han Jong-hee on May 31.The senior official talked about the merger and acquisition (M&A) to reporters at the Hotel Shilla where the Samsung Award ceremony took place.Asked about whether the M&A process is underway, he responded positively, noting, “You can say that.”But he refused to elaborate on what company or companies are targeted or when the M&A will be announced.During this year’s Consumer Electronics Show in Las Vegas, Han also commented that Samsung Electronics was striving for M&A in the semiconductor or home appliance businesses.Back then, he said, “A good piece of news is just around the corner.”Observers expect that Samsung will try to acquire a powerhouse in the semiconductor business.“Samsung Electronics is required to secure a new growth engine in the foundry industry through an M&A,” Eugene Investment & Securities analyst Lee Seung-woo said.A foundry refers to a chip fabrication plant. The foundry model is a business model consisting of a foundry and an integrated circuit design operation, each belonging to separate entities.Samsung hopes to rack up a fast growth in the foundry business.Relatively reluctant to aim for inorganic growth, Samsung Electronics was not proactive in the M&A market.Under the leadership of Vice Chairman Lee Jae-yong, however, the corporation changed its stance.For one, the Seoul-based outfit spent $8 billion in 2016 to acquire Harman, the market leader in connected car solutions. Tens of millions of vehicles are equipped with Harman’s connected car and audio systems.이 기사를 공유합니다
Kevin Chung
(jumphigher55@aol.com)