Samsung Electronics to pursue corporate acquisitions via new taskforce

Samsung Electronics Vice Chairman Han Jong-hee delivers a speech during the Consumer Electronics Show in Las Vegas in this Jan. 5 file photo. Courtesy of Samsung Electronics

By Park Jae-hyuk

Samsung Electronics organized a taskforce recently in charge of discovering new businesses in the device sector, under the direct supervision of Vice Chairman Han Jong-hee, the company said Tuesday.

Its latest decision has been interpreted as part of efforts to pursue large acquisition deals in the global market, although the conglomerate has remained cautious about mentioning details of the new taskforce's roles.

According to industry officials, Samsung Electronics Vice President Kim Jae-yoon was appointed to lead the taskforce comprised of around 10 employees from the company's planning and strategy departments.

Kim has led Samsung Electronics' planning team handling corporate acquisition deals, under the command of President Park Hark-kyu.

After Samsung Electronics promised last year that it would push ahead with significant corporate acquisition deals within the next three years, the company restated its intention earlier this year to sign such deals in various sectors.

"We are moving faster than you might think. We are open to every possibility, and I think we can deliver good news sooner or later," Han told reporters during the Consumer Electronics Show in Las Vegas in January.

Last month, former Bank of America investment banker Marco Chisari, who is known as an expert in mergers and acquisitions in the semiconductor sector, was hired as the head of the Samsung Strategy and Innovation Center.

In addition, Samsung Electronics President Ahn Joong-hyun, who directed tasks related to M&A deals, was promoted recently from an executive vice president.

Ahn has been recognized for his contribution to his company's successful acquisition of Harman International, a U.S. audio electronics company.

As of the first quarter of this year, Samsung Electronics was estimated to hold around 125 trillion won ($98 billion) in cash.

However, it has not achieved any significant corporate acquisition deals in the market, after taking over Harman for $8 billion in 2016.

As competition has been heating up in recent years with its global rivals in memory chips, TVs and smartphones, the company has faced growing calls from industry experts to make more efforts to find new growth engines through acquisitions.

Site Map E-paper Subscribe Register LogIn
Site Map E-paper Subscribe Register LogIn