Samsung SDI announces acquisition of battery pack business of Magna International.
Samsung SDI, Samsung's energy solutions and electronic materials business, has announced to acquire the battery pack business of Magna International. The acquisition is aimed at enhancing Samsung SDI’s capabilities in batteries for electric cars by combining Samsung's battery cells and modules with Magna's battery pack technology.
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Magna’s technology and experience in providing the global car industry with battery packs is believed to also help Samsung SDI get more customers in the fast-growing car battery markets in Europe, North America and China.
"The acquisition is a key strategic step for Samsung SDI to strengthen the competitiveness of our automotive battery business,” said Namseong Cho, President and CEO of Samsung SDI. "It will provide new momentum to expand our business and customer base.”
Samsung SDI will acquire the entire battery pack business from Magna Steyr, an Austria-based operating unit of Magna International, including all 264 employees, production and development sites and existing contracts of the business.
Samsung SDI will not disclose the financial terms. The transaction is expected to be completed during the first half of 2015, pending regulatory approvals.
The global market for electric vehicles, including hybrid and plug-in hybrid models, is forecast to reach 7.7 million vehicles by 2020, compared with 2.1 million in 2014, according to research firms B3 and IHS.
Batteries for electric cars are the key for maturing market. The Samsung SDI plans are not as bold as Tesla Motors' plans for a Battery Gigafactory.
About Samsung SDI
Samsung SDI is a solution provider in materials and energy. Established in 1970, Samsung SDI began as a producer of cathode ray tubes and entered the energy solution business in 2002. It has since successfully transformed itself into a provider of batteries and energy storage systems, while expanding into the field of automotive batteries. Following its merger with Cheil Industries in 2014, Samsung SDI now aims to create synergy between its energy solution business and the newly acquired electronics and chemical materials business. Samsung SDI's products include small-sized lithium-ion batteries, automotive batteries, energy storage systems, materials for semiconductors and displays, plastic for electronic devices and vehicles, as well as artificial marble.
About Magna Steyr
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The Company is a global automotive supplier with 313 manufacturing operations and 84 product development, engineering and sales centers in 28 countries. Magna has approximately 131,000 employees.. The product capabilities include producing body, chassis, interior, exterior, seating, powertrain, electronic, vision, closure and roof systems and modules, as well as complete vehicle engineering and contract manufacturing. The Magna common shares trade on the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA).