Shares in Samsung Electronics are higher following the company’s announcement yesterday of its biggest acquisition to date.

The South Korean company said after market close yesterday it would pay about $8bn in cash for US-listed Harman Industries, a global leader in connected car technology, as it boosts its ambitions in automotive and smart car technology.

It is the company’s biggest acquisition on record, and also the largest overseas takeover by a South Korean company.

Samsung shares are up 0.7 per cent in Seoul on Tuesday, but had been up as much as 1.8 per cent in morning trade. On Monday, they closed 2.8 per cent lower ahead of the release of the news. The benchmark Kospi index was up 0.1 per cent.

Despite the fallout from the global recall of its fire-prone Note 7 smartphones, Samsung shares are still up by 25.1 per cent so far this year.

Harman shares closed 25.2 per cent higher at $109.72 in New York on Monday, short of the $112 per share Samsung has offered.

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