Mobile behemoth Samsung has purchased a 10 percent stake in South Korea-based mobile producer Pantech.
Pantech is the third largest mobile phone manufacturer in the country behind Samsung and LG electronics.
According to reports the deal is worth 53 billion won or approximately $47.6 million USD. With the stock purchase Samsung will be the third largest shareholder in Pantech, behind only Qualcomm and the state-owned Korea Development Bank.
In a statement to the Yonhap news agency a represented for Samsung states that the move “will help further solidify bilateral cooperation in smartphone and other business areas.”
While Samsung will now be offered further collaboration with Pantech the company was quick to point out, “Samsung will have no involvement in Pantech’s business management in any way or form.”
Instead of assisting in the management of Pantech Samsung will become a “key component customer.”
In many ways the deal is a natural fit, for example, last year Pantech purchased $210 million worth of mobile components from Samsung and Samsung’s affiliates.
Pantech is a well respected tech giant in South Korea and surrounding regions. However, despite various efforts the company has failed to deeply penetrate the North American and European markets.
The company’s most flashy product of 2013 is the Vega No. 6 which features a phablet design with a 5.9-inch display that outputs full HD. Despite decent reviews and positive word of mouth that device hasn’t received the type of attention the Samsung Galaxy S4 and HTC One have received in 2013.
While Samsung plans to increase cooperation with Pantech the buy may also be part of a more broad industry wide strategy. Google, Apple, Samsung, and other manufacturers have worked tirelessly to tie themselves to competitors who may hold valuable patents they can use against their competitors.
Do you think Samsung has made a smart decision in partnering with Pantech on a deeper level?
[Image via pagegadget]