Report: Samsung To Buy Piece Of BYD To Gain Access In China, Add Partner

1 year ago by Mark Kane 15

Samsung SDI lithium-ion batteries at the 2016 North American International Auto Show in Detroit

Samsung SDI lithium-ion batteries at the 2016 North American International Auto Show in Detroit

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.

BYD Qin EV300

BYD Qin EV300

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.”

One of BYD's latest red-hot offerings the PHEV Tang

One of BYD’s latest red-hot offerings the PHEV Tang

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!

Tags: , , , , , ,

15 responses to "Report: Samsung To Buy Piece Of BYD To Gain Access In China, Add Partner"

  1. Terawatt says:

    It’s hard to like China in these cases. What a corrupt, nationalistic country! Scary to think of what they may behave like when they become a really serious military power. Obviously they aren’t on track to match the mighty – and often ruthlessly selfish, also in employing its military power – USA, but they are *relatively* closing the gap over several decades.

  2. Terawatt says:

    Off topic: I see more and more people who apparently have managed somehow to register – they set avatars/icons for their posts. I also notice some people can embed images or videos and use styling like bold font or italics.

    Having looked around the site I cannot find any hint about how one can do this. Perhaps it would be an idea to put some info out there, somewhere we can find it??!?

    1. Jay Cole says:

      Hey Terawatt,

      The icon/avatar you see is gravatar based. If you go to the Gravatar site, it will associate your email with an avatar of your choosing all over the web automatically.

      Also, if you drop a link to a picture or video (provided it is under 750 pcx wide), the system will automatically convert/embed.

      Although it does hold everything in moderation at first for clearing, so it can take up to an hour or two to show.

      1. Terawatt says:

        Thanks, Jay – and Sven for the limited HTML tips.

        Now we just need edit and notifications (when we receive replies) and we’d have like a system for the 21st century. 😉

  3. Brett Zanger says:

    Thanks for the hat tip.

    It looks like Samsung just found their way to penetrate the Chineese market. The Chineese government has blocked Samsungs’ technology and now they partnered with BYD. BYD is buddy buddy with the president of China. The CEO of BYD went to Brazil together and BYD got a factory while XI got a t-shirt. Now what will stop China from blocking Samsung’s batteries?

    If you can’t beat them buy them.

    FYI: I am long BYD

  4. Anon says:

    Bowing to Governmental Chinese Extortion in 3… 2… 1.

    1. Brett says:

      How many U.S. Companies bowed to Chinese Extortion? How many U.S. companies have partnered with Chinese companies in order to produce things in China?

      The Chinese government is aweful but no where near as aweful as ours for letting China get away with what they have been doing. No way should China have ever been given most favored nation trade status. We can thank Clinton and Gore and some Chinese “monks” for for the crappy trade situation we have with China.

      With that all being said and we all know how things on done it China and here, we must fight day and night against this or except we can do nothing but make a few pennies by investing in the right companies in a rigged system.

      1. Yoda says:

        Here in the home of the careful and the land of the politcally correct everyone is a winner even when you lose…
        So dont use any red marks on their papers just give the American companies a trophy and say thanks for playing…
        Cumbaya…

      2. Michel says:

        After that the Bush admistration make it even easier for the Chinese.

      3. Marshal G says:

        The only communist country republicans want to get tough with is Cuba, and that’s primarily because it helps them in FL with anti-Castro diehards, and also until recently couldn’t be used as a WalMart supplier sweatshop because of the embargo. Castro is gone, the other Castro is old and won’t last long, the embargo will go away under president Hillary, and soon cheap Walmart crap will start to say made in Cuba instead of made in China. Then republicans can find someone else to hate, and jobs will be lost to a different poor country. Life will go on.

  5. JySubaruOutback says:

    Whoever runs Samsung is a genius.

  6. Ian says:

    And the battery company becomes the car company…what is LG Chem going to buy?

    1. John says:

      Samsung is already an everything company.

  7. Anonsequitur says:

    China has overtaken the US in number of middle class consumers.
    http://qz.com/523626/chinas-middle-class-has-overtaken-the-uss-to-become-the-worlds-largest/

    By 2022, China is projected to more than double the USA.

    China has the largest EV market.

    Samsung’s CEO knows this. Any CEO would be suicidal to ignore this trend.

    If you want access to China’s middle class, you have to follow their rules. Don’t piss them off.

    You can’t discount geopolitics. South Korea agreed to allow the US to install an anti-missile weapon system that could both defend against North Korea, AND diminish China’s strategic missile forces capability.

    In the 60s, the USA put missile systems in Italy and Turkey, aimed at the Soviet Union, and in response they put missiles in Cuba.

    Don’t put anti missile systems on your adversary’s doorstep, or suffer blowback.

    As to “protectionism,”:
    The US blocked Huawei, ZTE, and other Chinese firms from bidding on US Gov’t telecom projects.

    President Obama backed Apple’s patent war against Samsung, resulting in a $1B judgment and ban on sales.

    The US Gov’t is blamed for the cancellation of a Chinese backed high speed rail project from LA to Las Vegas.

    Both China, and the US have arguably committed egregious acts of “protectionism.”

    If you hate China, you need to be internally consistent, and stop buying all their products. Don’t tell me what your values are, like free market/trade, rule of law, labor/environmental rights, etc., show me how you spend your money, and I’ll tell you what your values are.