Samsung Electronics to buy BYD shares worth $450 mln: report

By Park Sae-jin Posted : July 15, 2016, 10:31 Updated : July 15, 2016, 10:31

[Courtesy of Samsung SDI]


Samsung Electronics, the world's top smartphone maker, has agreed to buy new shares worth three billion yuan (450 million US dollars) in China's electric vehicle and battery maker, BYD, a report said Friday.

Samsung's investment was seen as a bid to strengthen strategic cooperation with the world's largest electric carmaker, Yonhap News agency reported, citing investment bank sources.

Samsung Electronics, the flagship of South Korea's largest conglomerate, Samsung Group, has already signed a deal to buy BYD shares, Yonhap said. There was no official word from the electronics giant which has Samsung SDI, a producer of cell batteries.

The deal followed news reports that China's state-owned JAC Motors stopped manufacturing an electric vehicle powered by Samsung SDI batteries
after the Korean company failed to join the list of battery suppliers eligible for state subsidies in China.

Samsung SDI was selected by JAC Motors as the exclusive supplier for its first pure electric vehicle but the Chinese company reportedly stopped production of its all-electric sports utility vehicle (SUV) iEV6s.  Samsung SDI and its domestic rival LG Chem had failed to win certifications for their batteries from the Chinese government.

Aju News Lim Chang-won = cwlim34@ajunews.com
 
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