Seoul (Reuters): South Korea’s 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, Korea Economic Daily said on Tuesday.
LG Electronics , South Korea’s No.2 smartphone maker after Samsung Electronics , has been preparing for the deal for more than one and a half years with its parent LG Corp as part of 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.
Japan’s Panasonic Corp may buy ZKW Group, a person familiar with the matter said in December. But a ZKW spokesperson said at that time that it was not negotiating with Panasonic or other potential suitors.
LG Electronics , along with affiliates like display maker LG Display Co Ltd 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.