NEW YORK (TheStreet) -- Bloomberg News' Tommaso Ebhardt explained why South Korea-based Samsung Electronics (SSNLF) is interested in acquiring Fiat Chrysler Automobiles' (FCAU) - Get Report auto-parts affiliate Magneti Marelli, in a deal worth more than $3 billion, on "Bloomberg Markets" Wednesday.
One reason Fiat may want to sell its auto-parts business is that CEO Sergio Marchionne has an "obsession" with meeting 2018 financial goals, Ebhardt said.
"One of the most important targets is to go from $5 billion in debt to at least $4 billion of cash positioning in 2018," he explained.
If Fiat sells Magneti Marelli for $3 billion, the Italian automobile company "gets really close" to that target, according to Ebhardt.
As for why Samsung may be interested in acquiring the business, "it's all about tech companies and car companies going together," Ebhardt commented.
"Marchionne has said in the past he wants to be the Apple (AAPL) car, he was the first to sign a deal with Google (GOOGL), he's in talks with Uber so Samsung may be interested in entering the car business," he continued.
Shares of Fiat are soaring by 8.39% to $6.59 late this morning.
Separately, TheStreet Ratings rated Fiat as a "hold" with a score of C.
The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and growth in earnings per share. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including weak operating cash flow, a generally disappointing performance in the stock itself and disappointing return on equity.
You can view the full analysis from the report here: FCAU
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.