Magna Sells Automotive Battery Pack Unit to Samsung
Published By : 24 Feb 2015 | Published By : QYRESEARCH
Samsung SDI has bought out Magna International’s battery pack unit, state reports. Magna International is the fourth largest automotive parts manufacturer in the world that is based in Canada.
Korea based Samsung SDI declared on Monday that it had signed a deal with Magna Steyr regarding acquiring the whole battery pack business unit belonging to Magna. The unit, called Magna Steyr Battery Systems (MSBS) GmbH & Co OG, focuses on battery packs that acts as an associate of Magana Steyr. Magana Steyr is a part of Magna International based in Austria.
The deal between Samsung and Magna is estimated to allow Samsung SDI to finish an integrated electric car battery business system, which works in the flow of cells to modules to packs. However, the amount of acquisition money was not revealed due to the private nature of the deal.
When it comes to battery cells and modules, Samsung SDI has established a sort of global leadership. However, in terms of battery packs, it is rated as rather weak. With the help of this contract with Magna, Samsung SDI has earned the ability of expanding its business as well as customer base in the rapidly growing automotive battery industry in North America, Europe, and China by joining its capabilities in battery modules and cells with Magna’s proficiency in battery packs.
The transaction between Magna and Samsung SDI will involve the former’s entire task force of 264 employees, existing contracts of the Magna business, production and development sites, and acquisition of a 100 per cent stake of Magna Steyr Battery Systems.
By acquiring Magna’s entire battery pack business, Samsung will be able to secure for itself a certain level of global competitiveness. It will also catapult the Korea based battery manufacturer to the top position in the worldwide automotive battery market .