Samsung Electronics Co. is gaining attention after it recently purchased shares in Rainbow Robotics Co. as there are speculations that this could be a signal that the tech giant has resumed mergers and acquisition activities.

Samsung Electronics virtually halted M&A activities since its acquisition of American car electronics company Harman in 2017.

According to a disclosure filed with the Financial Supervisory Service system on Monday, Samsung Electronics purchased 913,936 shares in Rainbow Robotics on March 15 for 27.8 billion won ($21.2 million), raising its stake to 14.99 percent from 10.22 percent. The initial stake purchase in January of this year was worth 59 billion won.

In the latest deal, Samsung Electronics also signed a call option contract, leaving open the possibility of buying out Rainbow Robotics in the future. Depending on the amount of call options that can be exercised, Samsung Electronics could become the robot maker’s largest shareholder with its stake increasing up to nearly 60 percent.

Rainbow Robotics put forth a proposal to appoint Yoon Joon-oh, vice president at Samsung Electronics’ planning team, who led the transaction, as a non-executive director at a shareholder meeting scheduled at the end of this month.

Samsung Electronics is looking to foster its robot business as a new growth engine. The company plans to launch a senior-focused exercise-assisting robot EX1 later this year. The additional acquisition of a stake in Rainbow Robotics, which possesses multi-legged robot platform technology, could be a signal for Samsung Electronics to restart its M&A activities.

Samsung Electronics has emphasized its intention to explore new business opportunities and strengthen competitiveness through M&As. At a press conference at CES 2023 earlier this year, Samsung Electronics Vice Chairman Han Jong-hee said that Samsung is making efforts in the M&A area although he didn’t provide further details.

During a shareholder meeting on March 15, Han said Samsung Electronics is making efforts to expand facility investment and seek M&As to strengthen the foundation for sustainable growth.

By Pulse

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