Samsung set to buy US auto parts supplier Harman for $8 bln

Samsung Electronics said on Nov. 14 it would buy U.S. auto parts maker Harman International Industries for $8 billion in a bid to enter the growing market for automotive technology to produce "connected" cars. The deal, the biggest in the firm's history, will provide a chance for the tech titan to move past the exploding Galaxy Note 7 crisis that is expected to cost it billions of dollars as well as it cherished reputation.

Board members of Samsung - the world's largest producer of smartphones - approved the all-cash deal of the Connecticut-based firm for $112 a share, Samsung said in a statement.

The deal will give the South Korean giant a "significant presence" in the global market for online-connected auto parts, the firm said.  "Harman perfectly complements Samsung in terms of technologies, products and solutions, and joining forces is a natural extension of the automotive strategy we have been pursuing for some time," Samsung vice chairman Kwon Oh-Hyun said in a statement.  

"Harman immediately establishes a strong foundation for Samsung to grow our automotive platform."

Harman produces high-end audio systems and other internet-enabled entertainment features for global carmakers including General Motors and Fiat Chrysler.

Samsung Electronics - the flagship unit of the Samsung Group - produces a wide range of electronics from smartphones to home appliances and semiconductors.

The latest deal will offer the firm a chance to combine Harman's expertise in high-tech auto parts and its own mobile and semiconductor technologies, Samsung said.

Samsung is hoping to complete the deal by the third quarter of 2017 after getting approvals from Harman shareholders and regulators.

The latest deal also came...