Report: Samsung To Buy Piece Of BYD To Gain Access In China, Add Partner
Samsung would like to take BYD on as a partner by buying a stake in the largest Chinese plug-in manufacturer, as talks between the two companies have progressed on a private placement of shares.
Samsung sees BYD as way to boost its auto semiconductor business, and maybe also the company’s lithium-ion battery business – especially after the Chinese government refused to include Samsung SDI on an approved list of suppliers to enable EV subsidies.
“Samsung is pursuing the investment after its affiliate was among foreign battery makers left off a list of suppliers approved by China, where sales of electric vehicles are surging and the government has sped up construction of charging points. The talks with BYD also add to the global trend of technology companies and automakers collaborating as car buyers increasingly demand more advanced powertrains and features that improve connectivity and safety.”
Bill Russo, a Shanghai-based managing director at Gao Feng Advisory Co. said:
“It puts Samsung into the electric-vehicle subsystem supply chain for a key Chinese electric vehicle and battery manufacturer. BYD gets a technology innovation pipeline partner with a reputable brand.”
Currently details on the acquisition, including the size of the investment, have not been released, although earlier speculation pointed to around 5%.
source: Bloomberg, Hat tip top Brett!