Samsung spends nearly 1.7 billion USD to acquire German company FlaktGroup

Samsung Electronics has just announced that it will acquire German air conditioning and heating systems manufacturer FlaktGroup from private investment group Triton for 1.5 billion euros ($1.68 billion).

This is Samsung's biggest deal in eight years, aimed at meeting the growing cooling needs of data centers serving artificial intelligence (AI) projects.

Samsung said the data center market has very high barriers, requiring global experience, design capabilities, and optimal solution delivery. The deal is expected to be completed this year.

At a March shareholder meeting, Chairman Jay Y. Lee said Samsung is looking for major investments to boost growth after falling behind rivals in AI chips. Samsung also expressed ambitions to buy more chip companies.

However, Samsung's acquisition of FlaktGroup could disappoint investors hoping for bigger deals involving the chip business, analysts said.

Greg Roh, head of research at Hyundai Motor Securities, said the deal was more about strengthening Samsung's consumer electronics and home appliances businesses than a breakthrough deal. Roh also said Samsung was playing it safe instead of betting big.

Since its $8 billion acquisition of auto electronics maker Harman International Industries in 2017, Samsung has been less involved in major deals.

This month, Samsung subsidiary Harman acquired the audio business of US company Masimo for $350 million. Samsung said that the consumer audio business, along with cooling and heating systems, medical and robotics, is a new growth driver./.

(Vietnam News Agency/Vietnam+)

Source: https://www.vietnamplus.vn/samsung-chi-gan-17-ty-usd-thau-tom-cong-ty-flaktgroup-cua-duc-post1038458.vnp