Samsung puts Magneti Marelli deal on the back burner to deal with the Galaxy Note 7 crisis

It was reported earlier this year that Samsung was in talks with Fiat Chrysler Automobiles to acquire its automotive parts subsidiary, Magneti Marelli. The company was reportedly interested in Magneti Marelli’s capabilities in telematics, lighting and entertainment. It was suggested that if a deal was made it could be worth around $3 billion. There were good vibes coming from Fiat Chrysler CEO Sergio Marchionne as he said he was not personally opposed to Samsung acquiring Magneti Marelli. However, Samsung has bigger fish to fry right now. It’s dealing with the fallout from the Galaxy Note 7 crisis and has predictably put talks with the auto giant on the back burner.

Talks between Fiat and Samsung are said to have stalled because the Korean giant is focused on dealing with the Galaxy Note 7 crisis that by its own estimates so far is going to cost it $5.3 billion. Apparently both companies have yet to decide on the value of Magneti Marelli and the structure of a possible deal. Talks haven’t fallen through but it now appears to be unlikely that a deal might be signed by the end of this year as Samsung’s priority right now is to manage the Galaxy Note 7 fiasco and not pursue large deals.

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