Samsung Electronics Chairman Lee Jae-yong is finalizing major management moves. The company has established a new M&A team within the Business Support Office, led by President Ahn Jung-hyun, who is known for the 2017 Harman acquisition, valued at approximately 9 trillion won. Following several large Mergers and Acquisitions this year, Lee is expected to pursue a deal surpassing Harman, utilizing nearly 100 trillion won in reserves.
Despite its potential, Samsung is still perceived as lacking a commanding presence in the global AI arena. Large-scale mergers and acquisitions (M&As) could be the key to overcoming this shortcoming swiftly.
The M&A team, which evolved from the former Business Support Team and led by President Ahn, has gained prominence with the formalization of the Business Support Office and M&A team. Ahn, an M&A expert who managed key deals like Samsung’s 2016 printing sector divestment and the 2014 Hanwha deal, is expected to see increased influence.
Samsung’s cash reserves are robust, with net cash at the end of September reaching 92 trillion won, an increase of 5 trillion won from March, including cash, cash equivalents, short-term financial instruments, and excluding borrowings.
After a hiatus since the Harman deal, Samsung’s M&A activity is restarting strongly. This year, it incorporated Rainbow Robotics, acquired Masimo’s audio unit for $350 million, and bought Germany’s FläktGroup for 1.5 billion euros (approximately 2.4 trillion won).
Experts expect Samsung to pursue mergers and acquisitions (M&As) in AI semiconductors and physical AI, the latter being especially promising. Many companies demonstrate technological strength, but few have tangible results, making them attractive targets for mergers and acquisitions.
Unlike Hyundai and LG, which have established a robotics presence, Samsung’s efforts, such as Rainbow Robotics, although advanced in humanoid technology, have yet to reach a global scale.
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Prof. Kim Dae-jong from Sejong University stated that, with semiconductor recovery and AI preemption as core strategies, ongoing investments and mergers and acquisitions (M&As) are expected, forming the foundation for competitiveness and growth.
