LG Electronics’ negotiations with the Vietnamese conglomerate Vingroup ended in failure because the latter’s offer was lower than LG Electronics’ expectations.

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.

Due to increasing deficits in recent years, LG Electronics intends to sell its mobile phone business so that it can focus on other business areas like electric vehicle parts.

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.

In addition, among companies that expressed interest in acquiring LG’s mobile phone business, Vingroup made the most attractive offer.

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.

LG Electronics is South Korea’s second-largest electronics company after Samsung. In addition to smartphones, it is also involved in a range of industries, including white goods and home appliances.

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.