Samsung Electronics, one of the largest manufacturers of consumer electronics, is planning to acquire SanDisk, a leading maker of flash memory card products. In an interview with Reuters and cited by the online newspaper eDaily, a representative for the South Korea-based company confirmed that Samsung was considering “various opportunities” regarding the flash memory maker.

 

“We are looking at various opportunities regarding SanDisk, but nothing has been decided yet,” James Chung, a spokesman for Samsung, told Reuters, in response to reports that the company was interested in bidding for the US flash memory maker.

 

Recent reports indicate that Samsung hired JPMorgan Chase & Co. one month ago to act as adviser for the potential transaction, and that the company's chip division is expected to lead the acquisition plans. Nevertheless, at this point in time, there are no details available regarding the financial implications of this possible acquisition.

 

On the other hand, SanDisk said in a recent statement that the company had engaged in periodical “conversations with multiple parties, including Samsung, regarding a variety of potential business opportunities.” At the same time, it also revealed that it was evaluating each and every one of these opportunities, stressing that it would not comment on market rumors or speculations, as part of the company's policy.

 

SanDisk is a customer of Samsung, which supplies NAND flash memory chips to the California-based memory vendor. Samsung's acquisition of SanDisk could have a significant impact on the flash memory market, as such a move would enable it to become a major player in this segment. “By acquiring SanDisk, Samsung could also reduce expenses related to royalties, and also use SanDisk's marketing presence to establish itself in the flash-based computer market,” said James Song, an analyst at Daewoo Securities Co.

 

This is not the first time that reports about a company looking into acquiring SanDisk surface. Just last month, for instance, the EE Times informed that Seagate Technology was planning to bid for SanDisk, although whether said plans included the entire company or just a part of it is not certain to this day.