SEOUL, South Korea—LG Electronics Co. Ltd., one of the world’s top five handset vendors, plans to acquire South Korean handset rival KTF Technology, allowing LG to go head-to-head with Pantech Group, which is now the top handset vendor in the South Korean market.
Pantech acquired SK Teletech in South Korea last year, edging out LG as the leader in volume sales in South Korea. The acquisition was part of Pantech’s long-haul strategy of joining the ranks of the world’s top handset manufacturers.
LG and KTFT have reached a “general agreement” for the acquisition, with details to be hashed out in future negotiations, an LG spokesperson said.
KTFT specializes in handset design and development and outsources its manufacturing. The company sold about 810,000 units last year in South Korea, making it the fifth largest handset maker in South Korea after Pantech, LG, Samsung Electronics Co. Ltd. and Motorola Inc.
In North America, LG ranked second in sales of mobile phones last year, according to Strategy Analytic. LG sold just over 26 million handsets last year in the North American market, for an overall 17 percent market share. Globally, the company led in CDMA handset sales last year, with unit sales of 30.4 million, or a 21 percent worldwide market share.
