South Korean electronic major Samsung is negotiating with Chinese electronic car maker BYD to pick up a minority stake in the company, as Samsung seeks to expand its horizon in China's lucrative automobile industry.  

Samsung announced on Friday that it was exploring various avenues for seeking cooperation with BYD, according to Korea Economic Daily. The Chinese electronic car manufacturer is backed by American mercurial investor Warren Buffett.

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Bloomberg reported that talks between Samsung and BYD are still in the negotiation stage, denying the report by Korea Economic Daily that an agreement has already been reached to acquire a four percent stake in the company.     

According to other media reports, Samsung has categorically stated in an e-mail statement that it would not disclose the exact size of the investment and other financial details unless the deal is confirmed.

Stocks of both companies on Friday surged after the news of deal hit the market. Shares of BYD rose by 5.2 percent at the Hong Kong stock market, while Samsung's shares climbed 1.2 percent in the Korean stock exchange.               

Samsung's interest in BYD comes after its affiliate company Samsung SDI was excluded from a list of suppliers that qualify for government subsidies. The move is seen as a huge setback for Samsung's ambition to expand its business in China's electric car market.

Experts claim that buying a stake in BYD will help Samsung to push the sale of other car components like navigation satellites and automobile entertainment spare parts. BYD is the world's largest manufacturer of hybrid and battery-powered vehicles by volume. Its recent sales have even managed to beat American electric car maker Tesla.

TagsSamsung Electronics, BYD Co. Ltd., china, BYD Electric Cars, Samsung China