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Friday, July 15, 2016, 12:45

Samsung in talks to invest in BYD

By Bloomberg

HONG KONG - Samsung Electronics Co, the world’s largest maker of phones and memory chips, is in talks with BYD Co about investing in the Chinese electric-car manufacturer, the South Korean company said.

Details including size of the investment will be disclosed when they’re confirmed, Samsung said Friday in an e-mailed statement. The investment in BYD, backed by Warren Buffett’s Berkshire Hathaway Inc, would bolster Samsung’s semiconductor business for cars, the South Korean company said.

Samsung may invest 500 billion won (US$442 million) to buy a 4 percent stake through a sale of new BYD shares, the Korea Economic Daily reported earlier Friday. A BYD spokesman said he’s not aware of any investment.

BYD rose 3.7 percent as of 11:16 am in Hong Kong, while Samsung Electronics climbed 1.2 percent in Seoul trading.

The investment will strengthen Samsung’s business with BYD for electric-vehicle components and smartphones, the Korean company said.

BYD won approval from the Chinese government in February to raise as much as 15 billion yuan through additional share sale to help fund expansion of its production of batteries for new-energy vehicles and product development. The company has six months to sell the shares after winning approval.

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