“LG has negotiated with Vingroup to sell smartphone factories in Vietnam and Brazil. However, the agreement has collapsed because the price cannot be agreed, ” Korea Times quoted an unnamed leader.
According to this leader, LG will look for another partner to sell the smartphone segment. Smartphone manufacturing factories in Vietnam and Brazil can be converted to household appliances.
However, LG leaders also consider the possibility of still selling smartphone factories, and retaining patents and exclusive designs. If you sell these factories, workers can be transferred to another department.
Over the past five years, LG’s smartphone business has lost $ 4.5 billion. This situation makes LG Group CEO Kwon Bong-seok considering selling or shrinking the company’s smartphone segment, according to the Korea Herald.
Shortly thereafter, information from Korea showed that Vingroup is one of the names with the potential to reach an acquisition agreement. The Vietnamese company is looking to expand into its high-tech businesses, and the acquisition of a smartphone by a big name could serve many purposes.
After the intention to sell the smartphone segment, LG announced to many of its component suppliers, including Chinese display maker BOE, to halt development of products such as scrollable smartphones.
Besides smartphones, LG is investing in many other businesses such as electric vehicles and car components. In December 2020, LG announced a partnership with vehicle specialist Magna International to manufacture electric vehicles.