Trying to buy Austrian car headlight maker ZKW
Troubled LG Electronics participated in a main bidding round to buy Austrian automotive light maker ZKW Group in a deal that could potentially fetch $1.2 billion.
According to the Korea Economic Daily, LG Electronics, South Korea’s No.2 smartphone maker after Samsung, has been preparing for the deal for 18 months with its parent LG Corp as part of its efforts to diversify its auto electronics business, the report said, citing an industry official.
The report said a preferred bidder is expected to be selected next month.
Panasonic was rumoured to be buying the ZKW Group in December. But a ZKW spokesperson said at that time that it was not negotiating with Panasonic nor other suitors.
LG, along with affiliates like display maker LG Display and battery producer LG Chem, has identified the auto industry as a new growth driver and has been pushing to grow new businesses amid continued struggles for its mobile phones division. LG’s automotive clients include General Motors and Volkswagen.
