LG reportedly in talks to sell smartphone business to Vietnamese conglomerate

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LG Electronics has been making headlines with swirling reports that the company plans to exit the smartphone business. The latest development involves a Vietnamese conglomerate who is reportedly in talks of buying the smartphone business from LG Electronics.

According to BusinessKorea, Vietnam’s Vingroup Co has put the most attractive offer to buy LG’s smartphone business. The company accounts for 14% of Vietnam’s market capitalization of listed Vietnamese companies. It has a diverse portfolio of businesses with hands in various industries including hotels, real estate, distribution, cars, smartphones, and land development. The company already produces smartphones for LG under ODM contract and is the top third smartphone manufacturer in Vietnam behind Oppo and Samsung.

LG Velvet

According to the report, Vingroup Co is interested in taking over LG’s smartphone business in the US and an acquisition would push Vingroup Co to a global presence. LG is reportedly interested in selling its smartphone business “piece by piece” as selling off the entire thing would prove to be very difficult.

Recently, LG sent an internal memo that foreshadowed imminent major changes to the mobile division including “sale, withdrawal, and downsizing of the smartphone business.” This does not bode well for the company’s recently teased LG Rollable with marketing date set for this year. The LG Rollable’ s future is now uncertain with this week’s news.

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