Samsung Electronics is reportedly in negotiations to acquire Fiat Chrysler Automobiles’ auto parts maker, Magneti Marelli, for over $3bn.
Citing people familiar with the matter, Bloomberg reported that the South Korean firm is particularly keen on Magneti Marelli's lighting, in-car entertainment and telematics business and may consider an acquisition of the entire firm.
The deal if signed could close this year and make it Samsung’s biggest acquisition outside South Korea.
Fiat Chrysler declined to comment on the report. A Samsung Electronics spokesman said the company does not respond to market rumors.
Italy-based Magneti Marelli was established in 1919. It develops and manufactures automotive systems, modules and high-technology components.
The company had a turnover of €7.3bn in 2015, about 40,500 employees, 89 production units, 12 R&D centres and 30 application centres.
Samsung Electronics vice chairman Jay Lee has been a director of Fiat Chrysler’s controlling shareholder Exor since 2012.
Samsung Electronics and other technology units of Samsung Group are considering automotive components as a new growth driver as sales in existing businesses like smartphones are moving at a slow pace.
Last month, Samsung acquired a 1.92% stake in Chinese electric-car maker BYD for $449m.
Apart from Samsung, companies like Apple and Google are also entering into automobile sector with new products and services.
Fiat is currently working with Google on driverless vehicles. The companies are building a fleet of 100 self-driving minivans, which would not be offered for sale.