Samsung might buy Magneti Marelli from FCA

Korean tech-giant Samsung is reportedly in talks with Fiat Chrysler Automobiles (FCA) to buy Magneti Marelli - an automobile components firm owned by FCA. It is still not clear whether the electronics company will buy a set of operations of Magneti Marelli, or the entire business unit.

Sources have claimed that Samsung is mainly interested in Magneti Marelli's lighting, in-car entertainment and telematics business, and is even willing to buy the whole company from FCA. An amount of US$ 3 billion is reported to be on the table for this acquisition. If the deal does materialize, it would be Samsung's biggest acquisition yet outside South Korea.

Last year, a report by Reuters had brought to light FCA's plans to sell Magneti Marelli in order to pay off the accumulating debt. On the other hand, the deal would help Samsung to enter into the automotive business with a proven brand name like Magneti Marelli.

Magneti Marelli is the company that supplies Automated Manual Transmissions (AMTs) in India to automobile manufacturers like Maruti Suzuki and Tata Motors.

Source: Bloomberg