SEOUL, South Korea – LG Electronics Inc. says it will acquire Austrian-based automotive light maker ZKW in the company's biggest acquisition so far.
The South Korean company said Thursday it plans to buy a 70 percent stake in ZKW Holding, a supplier to BMW and Mercedes-Benz, for 1.4 trillion won ($1.3 billion), or 1.1 billion euros. Its holding company LG Corp. will purchase the remaining stake for 330 million euros ($402 million).
LG is banking on its automotive parts business to get a stronger foothold in the market. LG said the purchase of ZKW, which makes high-quality lights for top automakers around the world, will enhance its auto parts business portfolio.
The South Korean company said the acquisition will also help develop advanced automotive lighting for self-driving cars and next-generation automotive lighting.