SEOUL, Sept. 28 (Korea Bizwire) — LG Electronics Inc. said Thursday the company is undecided over the rumored takeover of Austrian automotive lighting system firm ZKW Group, neither declining or confirming the rumor.
“The company has been making various reviews in line with its preparation for future-growth businesses. There are no details on the rumor over the takeover of Austrian auto parts maker ZKW,” LG Electronics said through a regulatory filing.
Last month sources said LG Electronics is seeking to acquire the Austrian firm with an estimated investment of 1 trillion won (US$873 million). LG Electronics then also made a similar regulatory filing.
Established in 1938, ZKW produces lightening products for automobiles, with its partners, including top-notch brands, including BMW, Volkswagen and Ford.
Industry watchers said a successful acquisition of ZKW Group will help LG Electronics expand its vehicle components business, which was launched in 2013.
As LG Chem Ltd. and LG Display Co. also produce automotive batteries and displays, respectively, the potential takeover is anticipated to help LG expand its presence in the automobile industry, they added.
Samsung Electronics Co., LG’s bigger tech rival, took over Harman International Industries, a U.S. manufacturer of in-car entertainment systems and car audio equipment, with an estimated investment of 9 trillion won.