South Korean electronics giant Samsung Electronics has acquired a 2 percent stake in Chinese electric-vehicle and battery maker BYD Co. in a deal worth US$455 million.
According to a regulatory filing from BYD, Samsung bought the stake through a share placement exercise undertaken by the Chinese firm.
BYD, which is backed by US billionaire Warren Buffett, sold a total of 252 million new shares, or roughly 9 percent of its enlarged capital, to six investors, including Samsung.
The five other investors are all Chinese asset-management firms, according to the Wall Street Journal.
BYD raised US$2.2 billion in total from the share placement, aiming to use the funds to expand the company’s electric-vehicle production.
Samsung’s investment in BYD comes as global tech firms are tapping into the automotive industry’s shift toward next-generation vehicles such as electric and self-driving cars, the Journal noted.
The South Korean firm said earlier that it aims to strengthen its chip business for electric cars.
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