According to several media reports, including Buisenesskorea, Pulsenews,e.t.c largest employer in South Korea, Samsung Electronics, this year is likely to make a merger and acquisition deal with LG to purchase OLED panels.
It was hard to think these companies could trade technology with each other, but in recent times, we have seen Samsung collab with Intel, Google, and TSMC.
The news has surfaced, but Samsung has already been in situations in 2017 and early 2021. Due to the shortage of components and Samsung’s current withdrawal from the LCD business, Samsung already has a diverse investment and is thinking of pushing through their OLED TVs because saturation hasn’t settled yet in this area until the QD display becomes the norm. Samsung will try to churn this.
Samsung has already dependent on the Chinese for panels, and the recent announcement of withdrawal from the LCD business is seeking out LG because of less investment in Q&C.
Samsung’s DX(device experience) division head Han Jong-Hee has said that.
” We are still reviewing M&A deals,” in a meeting with reporters right after the 32nd Samsung Ho-Am Awards held at Shilla Hotel in Seoul. It is more likely to happen because the Vice president of Samsung, Kim Jae Yoon, is currently leading a team of ten people from different departments for planning and strategy. Also, the company has hired an investment banking expert, Marco Chisari, as VP of SSIC and foundry business for Samsung.
Samsung also seems to be in a decent financial condition to pull off this M&A as it made an operating profit of KRW 14.12 trillion while still making a profit further if Q&C requires less for the components from LG.
When asked about M&A deals at CES2022, Han said, “I think that we will be able to deliver good news soon concerning M&As,”
With this, we can conclude that this merger is most likely to happen, and also, the opportunities for future M&A are open too.