Samsung to buy stake in smaller local rival Pantech, securing innovation access

Samsung has purchased a 10% stake in South Korean rival Pantech in a deal that sets it back some 53 billion won ($47.6 million).

Samsung Electronics Co., the world's largest 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 53 billion won (US$47.6 million), will help further solidify bilateral cooperation in smartphone and other business areas, it said.

   With the stake purchase, Samsung will emerge as Pantech's third-largest stake holder after the U.S. mobile chip manufacturer Qualcomm Inc. and state-run Korea Development Bank, which each owns 11.96 percent and 11.81 percent in the company.

   Samsung and Pantech have strong ties in semiconductor and display businesses.

   Last year, Pantech purchased electronic parts worth 235 billion won from Samsung's affiliates such as Samsung SDI.

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