Samsung is considering a plan for more megasized mergers and acquisitions to strengthen its global market leadership in what has proved difficult times.
Speaking at a media conference at the CES global technology show in Las Vegas, Samsung co-CEO Han Jong-hee revealed the company had made investments in around 260 venture firms over three years encompassing artificial intelligence, digital health, fintech, robots and electronics. It now wanted to plan ahead for some more large scale acquisitions and mergers.
“We have made a lot of effort, continuously collecting and reviewing companies as M&A targets despite a series of unfavourable deal-making conditions, including the COVID-19 pandemic, geopolitical tensions, and global economic downturn,” he told the media conference.
“To strengthen our existing businesses and discover future growth engines, we’ve been steadily on M&A deals.”
Mr Han said Samsung was hopeful that a new M&A plan would be in place this year.
Rainbow Robotics is a possible acquisition for Samsung going forward.
In May 2023 Samsung Display acquired US microdisplay maker eMagin for US$218million. eMagin is regarded as an expert in OLED microdisplay technology.
Samsung’s audio subsidiary Harman, which operates JBL, acquired the multi-room music app Roon in November. Harman itself was a major acquisition costing it US$6.88 billion in 2017. Mr Han is signalling that a major acquisition of this scale may be on the way in 2024.
Last year proved a tough year for the Korean manufacturing giant. The company expects a huge drop in profit due partly to its semiconductor division posting its first ever operating loss. Han expects a difficult business environment in the year ahead. It estimates a fall in profit of 85 percent.
“The business environment will be difficult this year as well, but with a long-term perspective, we will quickly and boldly pursue talent, technology acquisition, and investment to prepare for the future,” he said at the media conference.
Mechtronics firm Rainbow Robotics has been a rumoured target for a Samsung acquisition. Last year Samsung increased its share holding in the company from 10.3 to 14.8 percent but so far hasn’t taken a controlling interest despite ongoing discussions.
