South Korea’s LG Electronics Inc. and its holding company LG Corp. are reportedly set to seal an estimated 1.3 trillion won ($1.2 billion) deal to acquire Austrian automotive light maker ZKW Group in line with the LG conglomerate’s inroads into the automotive market in the age of automated vehicles.

According to sources close to the matter, LG Electronics and LG plan to hold a board meeting within this month to approve the buyout plan that would make the largest-ever offshore M&A bid for the fourth largest Korean conglomerate.

LG Electronics has been chasing ZKW despite the hefty price tag to strengthen automotive electronics business since it set up vehicle component division in 2013. LG Group Vice Chairman Koo Bon-joon has been tending to the auto electronics business himself after naming it as one of the group’s new growth drivers.

ZKW, founded in 1938, is one of world’s top three automotive light manufacturers and supplies to global finished carmakers including BMW, Audi, Mercedes-Benz, Volkswagen, Volvo, Ford, Porsche, Infinity, and Rolls-Royce. ZKW raked in 968 million euros in sales in 2016, more than tripling from 280 million euros in 2010. It had 7,452 employees as of 2016.

Korean electronics makers have been shifting focus to automotive as electronics and connectivity dominate self-driving technology. Samsung Electronics in 2016 purchased Harman International, audio system, and connected solutions provider, at $8 billion.

If LG adds ZKW to its group, it would instantly join the ranks of global players in the automotive lighting industry dominated by ZKW, SL Corp. and Ichiko. The ZKW buyout is also expected to allow LG Group to produce full auto electronics parts through its affiliates with LG Display producing auto displays, LG Chem supplying electric vehicle batteries and LG Innotek providing motors and telecommunications equipment.

LG Electronics turned to ZKW after the Korean electronics giant in 2016 failed in the buyout of the light division of Magneti Marelli, the auto parts unit of Italy’s Fiat Chrysler Automobiles.

LG Electronics shares closed Monday down 4.13 percent at 104,500 won.

By Park Joon-hyung and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]