Samsung, the South Korean company is eyeing Magneti Marelli, the AMT gearbox maker owned by Fiat, as per reports. Samsung is looking to close the USD 3 billion deal by the end of this year, and as soon as this news emerged, FCA's share pricing has gone up by 9 percent.
Samsung seems to be interested in the lighting, in-car entertainment, and telematics vertices of Magneti Marelli, and to obtain these, the South Korean company has decided to buy the entire firm.
Personnel from both companies have declined to comment about the advances.
FCA's performance has been quite bad lately and has also showcased one of the weakest balance sheet in the industry. Sergio Marchionne's inability to rope in a merger partner is also a reason that has kept investors skeptical about the brand. The sale of Magneti Marelli is expected to have a positive impact on FCA's share prices.
Also, the money from Magneti Marelli's sale could help FCA pay off debts and concentrate on developing other projects that have come to a standstill due to lack of funds. For Samsung, it is a great way to strengthen its foot in the auto industry.