(Yicai Global) Jan. 14 -- Chinese  magnetic materials manufacturer Lingyi Itech is planning to acquire  Finnish power supplies firm Salcomp to improve the competitiveness of  its products.

Lingyi Itech has penned a letter of  intent to buy all of Salcomp Holding's shares, the Shenzhen-based firm  said in a statement today. The pair has negotiated a price for the deal  which will be confirmed in the share purchase agreement later. The  transaction will be settled in euros or US dollars. Lingyi Itech has a  right to withdraw its intent for the next 90 days.

The deal will help Lingyi Itech to  integrate resources and develop smaller and more efficient chargers to  meet the demand from consumer electronics manufacturers, the statement  added. 

Founded in 1975, Salcomp makes adapters  and chargers for mobile phones, tablets, smart home products and  personal electronics. The Salo-based company has factories in China, Brazil, and India.

Editor: Emmi Laine