After Samsung Electronics acquired Harman, who will be the protagonist of the next acquisition?
After Samsung Electronics announced the acquisition of Harman International for $8 billion, investors speculated that many companies would acquire companies that develop autonomous driving technology. This kind of speculation has injected a lot of vitality into many “suffocating†auto stocks, especially Visteon.
As of last Thursday (November 17), Visteon shares increased by 16%, and just before Samsung announced the acquisition of Harman International, Visteon shares plunged 39% this year. On November 18, Visteon shares closed at $79.46. On the day the Samsung announced the acquisition, the shares of Delphi and Mobileye, which developed the autonomous driving and driving entertainment system, rose more than 2%. On November 18th, Delphi’s shares rose 0.2% to close at $68.2; Mobiley’s shares fell 0.3% to $38.59.
After Samsung enters the field of automotive technology, smartphone maker Apple or other technology companies may follow Samsung's acquisition. Although there is no new trading decision, Samsung’s 28% premium also allows many investors to reconsider the value of some component suppliers. To date, the total stock of auto parts suppliers has fallen by 6%.
Major suppliers such as Bosch, ZF and Continental in Germany are also likely to start expanding their technology business. In addition, electronic groups such as Matsushita of Japan and LG of South Korea may also be interested in automotive technology. Analyst Jonas said that the reason why various companies are attracted by the automotive technology field is mainly because technology companies have seen the development prospects of automotive technology. These technology companies believe that while the demand for smartphones is strong, the car and travel areas are “inaccessible†and this imagination will continue for some time.
Morgan Stanley analyst Adam Jonas pointed out in a research report, "We believe that Samsung's acquisition of Harman will be a watershed and it will be important to reposition the parts industry. Starting today, investors are When it comes to stocks in the automotive industry and the parts industry, it is not unfounded to ask 'who is the next Samsung-Hamman?'
However, who is the next one?
Visteon is relatively easy to acquire
American Morningstar analyst Richard Hilgert believes that Visteon is likely to be the next one. Visteon has a market capitalization of $2.7 billion, Delphi has a market capitalization of about $18 billion, and Mobileye has a market capitalization of about $8 billion. Hilgert believes that the acquisition of Visteon is much easier than the acquisition of Delphi.
Morningstar analyst Richard Hilgert believes that Visteon's "temptation" is the biggest, because it is very similar to Harman, to a certain extent, "Little Harman." Visteon also develops dashboard technologies such as electronic displays, telematics systems and entertainment systems. In addition, Visteon is also good at human-computer interaction technology and is also developing automatic driving technology.
Visteon spokesman Jim Fisher declined to respond to this speculation, and Mobileye did not immediately comment.
Visteon's headquarters is located in the suburbs of Detroit. In 2000, it separated from Ford Motor Company and integrated the original Ford parts business. In 2009, it filed for bankruptcy protection and reorganized. The business focus is gradually on automotive interconnect technology and electronic technology. In 2015, Hankook Tire Co., Ltd. of Korea acquired its air-conditioning business.
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