Samsung to buy 10 percent stake in rival Pantech

South Korean electronics giant's investment in local rival Pantech in a deal valued at almost US$47.6 million will boost cooperation in smartphone and other business areas.

Samsung's 10 percent stake in Pantech will further strengthen bilateral cooperation in smartphone and other business areas.

Samsung Electronics has announced it will buy a 10 percent stake in South Korea's third-largest handset maker, Pantech.

Yonhap News Agency reported Wednesday the deal will be valued at about 53 billion won (US$47.6 million) and it will help solidify bilateral cooperation between both parties, particularly in the area of smartphones.

This investment will make Samsung the third-largest stakeholder in Pantech. It is behind U.S. mobile chip manufacturer Qualcomm and state-run Korea Development Bank, which own 11.96 percent and 11.81 percent stakes, respectively, it noted.

In the South Korean market, Pantech trails behind Samsung and LG Electronics in terms of mobile phone shipment, the report added.