By Kim Yoo-chul
Samsung Electronics is planning to expand through mergers and acquisitions (M&A).
Samsung plans to invest $21 billion over the next decade in healthcare and greener technology.
Samsung’s main M&A targets are not related to chips and LCD companies but on future growth engines, according to high-ranking Samsung executives, Wednesday.
Samsung is entering unchartered territory, considering it has grown with no major M&A deals. It has taken over Israel’s fabless chip designer TransChip but with little to show for it.
``Samsung Electronics has been in talks with several overseas companies for acquisition deals. As far as I know, the talks are under way for firms that are able to complement in areas where Samsung lacks competitiveness,’’ said a Samsung executive.
``Overseas companies with core technologies would be our targets.’’ In chips and LCDs, Samsung plans to maintain its cross-licensing strategies with its existing business partners.
The size of its targets will not be big, he said, although he doesn’t rule out the possibility of going for large ones.
This cautious approach is related to a previous failed attempt.
Samsung dropped its plan to buy U.S.-based flash memory card manufacturer SanDisk.
``The chances are very low that Samsung will go for costly acquisitions in semiconductors and LCDs,’’ added the executive.
It supplies LCD panels to leading technology companies such as Apple, Sony, Dell, Hewlett-Packard (HP) among others.
A senior Samsung Electronics spokesman declined to give specific information because of the sensitivity of the issue.
The remarks come just after Samsung Electronics Vice Chairman Choi Gee-sung said it was keeping a greater consistency in striking acquisition deals mainly outside the peninsula.
``It’s true that Samsung has struck several smaller M&A deals overseas that haven’t been announced,’’ the vice chairman told reporters in an industry late Monday.
``Samsung needs new seeds,’’ said the top executive.
Samsung has allocated 1.1 trillion won only for M&A, though the amount appears to be small for big buys.
Samsung Electronics earlier bought a majority stake in medical equipment maker Medison, with analysts interpreting it as a move aimed at going along the path of the General Electric (GE).