Hanwha seeks to buy Samsung Electro-Mechanics’ Wi-Fi module unit

Hanwha Solutions are seeking to buy Samsung Electro-Mechanics’ Wi-Fi module unit in a move to enhance its wireless communication division, a key sector for Hanwha Group’s new growth engines such as satellite communication and aerospace business.

Hanwha Solution has been in exclusive talks with Samsung for to buy the unit’s operations in South Korea and Thailand, according to merger & acquisition industry sources on Aug. 25. KB Securities is handling the deal.

Samsung has been trying to unload the division since last year as it is reorganizing its business structure focusing on high value-added products such as semiconductor substrates and multi-layer ceramic condenser (MLCC). It had signed a deal to sell it to WiTS Inc., an affiliate of Chemtronics Co. at 105.5 billion won ($90.4 million) in January. The deal collapsed, however, as WiTS withdrew the deal in May. So, Samsung has been negotiating with other companies including Hanwha.

The potential takeover is expected to help Hanwha speed up a business portfolio expansion into new sectors including urban air mobility (UAM), satellite communication and aerospace as Samsung’s Wi-Fi module unit is the world’s No. 2 player after Japanese electronics component maker Murata Manufacturing Co.

“We have been considering an acquisition of a Wi-Fi module business as one of many measures for new business, but nothing has been decided yet,” said Hanwha.

Hanwha already scouted executives from Samsung Electronics Co.’s mobile communication unit to work on acquisition of other companies for the new business.

Hanwha has been expanding its business portfolio into the electronic material sector from the current petrochemicals. The company is internally considering semiconductor equipment business after recently acquiring a domestic manufacture of fine metal mask (FMM), a key component for organic light emitting diodes (OLED) production.

Write to Jun-ho Cha at chacha@hankyung.com
Jongwoo Cheon edited this article.