April 29, 2024

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[THE INVESTOR] Samsung Electronics plans to sell one of its units that produces medical diagnostic devices to a Japanese health care device manufacturer, according to sources on Sept. 20.

Nipro, the No. 2 dialysis device manufacturer in the world, signed a letter of intent to acquire a in-vitro diagnostic device division of the Korean firm with a plan to close the deal by the end of this year, according to a Samsung official.

The Osaka-headquartered company has been supplying reagents to Samsung Medison, the diagnostic ultrasound system maker unit of Samsung.

Jeon Dong-soo, CEO of Samsung Electronics' health care division told some 100 employees working at the division that they will keep their jobs after the sell-off.

The planned sale is part of Samsung’s restructuring efforts to put more focus on core businesses -- ultrasound imaging devices.

“Samsung’s strategy for health care is to generate synergies between new and existing divisions,” an official said.

He added that Samsung, for instance, can utilize the technology of its TV division for medical imaging devices, but the diagnostic device unit was short of creating such synergies.

(theinvestor@heraldcorp.com)