Samsung Electronics Co.’s device experience (DX) head Han Jong-hee said on May 31 that the company is still promoting mergers and acquisitions to drive the company’s future development. He also said that the possibility of Samsung Electronics buying OLED TV panels from LG Display still exists.
“We are still reviewing M&A deals,” Han said in a meeting with reporters after the 32nd Samsung Ho-Am Awards at the Shilla Hotel in Seoul. He said in January that the company was looking for M&A opportunities in different areas. The company last month formed a special group for new businesses under the direct control of the head of the DX division.
Kim Jae-Yoon, a vice president who leads the company-wide management support office planning team, was appointed as the task force leader, which is made up of about 10 planning and strategy experts from different parts of the company.
Earlier this month, Samsung hired Bank of America investment banking expert Marco Chisari as executive vice president of the Samsung Semiconductor Innovation Center (SSIC) and foundry business in the US.
These and other moves suggest the company is close to announcing a massive investment, some industry watchers said.
“I think we’ll have good news on the M&A front very soon,” Han said when asked about the possibility of M&A deals at CES in 2022.
The company has the financial strength to conduct large-scale M&A transactions. As of the end of the first quarter of this year, Samsung Electronics’ net cash amounted to 107.84 trillion won. Experts estimate that Samsung could invest as much as 200 trillion won in mergers and acquisitions if liquid assets that can be turned into cash within a year are included.
At the same time, Han also said that Samsung Electronics and LG Display’s OLED cooperation is still possible. Currently, Samsung Electronics is highly dependent on Chinese panel makers as Samsung Display exits the LCD business. In particular, as the TV market is shifting towards the self-emissive display market, experts predict that Samsung Electronics will seek to maintain its market power with OLED TVs before quantum dot (QD) displays become mainstream displays for TVs.