Samsung Electronics Co., the world'slargest smartphone maker, said Wednesday that it has decided to buy a 10 percent stake in Pantech Corp., South Korea's third-largest handset maker.
The deal, valued at around US$47.6 million, will help further solidify bilateral cooperation in smartphone and other business areas, it said.
Samsung has confirmed the deal, providing a statement to TNW that explains it will be a passive investor with no input into Pantech's management decisions - presumably to offset any anti-competitive concerns:
Samsung Electronics has agreed to acquire a 10-percent stake in Pantech, valued at approximately KRW 53 billion. The investment is aimed at solidifying our relationship with Pantech, a key component customer of Samsung. Samsung will have no involvement in Pantech's business management in any way or form.
In the domestic market, Pantech trails behind Samsung Electronics Co. and LG Electronics Inc. in mobile phone shipments.