South Korean giant Samsung has bought a 10 percent stake in rival and South Korea’s third largest mobile phone company Pantech according to reports by TheNextWeb .

The purchase was done for a reported sum of 53 billion won or $48 million, Pantech is also Samsung’s component customer, this deal will solidify  the relationship between the South Korean companies and help joint research and development.

Samsung’s purchase makes it Pantech’s third-largest share holder after chip maker Qualcomm which owns 11.96 percent of Pantech, and the Korea Development Bank, which owns 11.81 percent.

“Samsung Electronics has agreed to acquire a 10-percent stake in Pantech, valued at approximately KRW 53 billion. The investment is aimed at solidifying our relationship with Pantech, a key component customer of Samsung. Samsung will have no involvement in Pantech’s business management in any way or form. ” Samsung said in a statement.

Samsung bought a stake in Sharp for $112 million recently for a 3% stake, this is of significance as Samsung’s main rival Apple is believed to buy about a third of its lcd panels from Sharp.