Here’s Why Shares of Fiat Chrysler Are Jumping

August 3, 2016, 12:49 PM UTC

Shares in Fiat Chrysler (FCAU) rose more than 8% on Wednesday after a Bloomberg report said Samsung was in advanced talks to buy some or all of the operations of its parts maker Magneti Marelli.

Fiat Chrysler (FCA) declined to comment on the report. Samsung could not immediately be reached for comment.

The source-based report said Samsung was particularly interested in Magneti Marelli’s lighting, in-car entertainment and telematics business and could consider an acquisition of the whole company.

The deal could be worth more than $3 billion with a goal of closing this year, the agency added.


Sources told Reuters last year that FCA was considering whether to sell the auto parts maker after receiving interest from potential buyers.

One of the people added at the time that the carmaker had rebuffed one offer as it was not willing to sell the unit for less than 3 billion euros ($3.36 billion).

FCA shares, which fell as much as 2.7% earlier in the session, were up 9%, on track for its biggest one-day gain since October 2014.