Date
11 December 2017
Samsung aims to strengthen its chip business for electric cars following an investment in China’s BYD. Photo: Bloomberg
Samsung aims to strengthen its chip business for electric cars following an investment in China’s BYD. Photo: Bloomberg

Samsung buys stake in Chinese electric car maker BYD

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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RC

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