On Monday, people familiar with the matter said that LG Electronics had tried to sell its smartphone factory to Vingroup, but the negotiation ultimately failed. The main reason for the failure of the negotiation was the cost.
It is reported that LG Electronics will sell its mobile phone factories in Brazil and Vietnam because these factories have expanded the company’s expenditure in recent years in the case of sluggish smartphone sales.
After LG Electronics announced the sale of its mobile phone business, Vingroup was considered a ‘suitable bidder’ for the acquisition of LG Electronics’ mobile phone business, as the company has been seeking to expand into the high-tech industry.
If the negotiation is successful, Vingroup will be able to use LG Electronics’ reputation, innovation, and sales network.
However, the above-mentioned people familiar with the matter said that because the price given by Vingroup is lower than expected, LG Electronics will no longer negotiate with Vingroup and will look for new buyers.
In addition, the company is in a leading position in 4G LTE and 5G patents. According to data from a US patent consulting company, the company obtained the most LTE and LTE-Advanced patents in the US for five consecutive years from 2012 to 2016.