Print

Comment

Email

Digg

Del.icio.us

Reddit

Sustainable perspective found for employees and locations - Mobile phones to continue under the Siemens brand

Taiwan-based BenQ Group, which also produces mobile phones in addition to other consumer electronic products like digital cameras, scanners and LCD screens, will acquire Siemens' entire mobile phone business with more than 6,000 employees worldwide. The business will be headquartered in Munich. The closing of the deal is expected in the fourth quarter of Siemens' fiscal year 2005.

This will give BenQ, which up until now has been very strong in Asia, access to the European and Latin American markets, where we hold leading positions," said Klaus Kleinfeld, the CEO of Siemens AG.

Siemens will invest in BenQ by purchasing shares of the company. In addition, the transaction also includes the rights to the brand and name, which BenQ will be allowed to use for a total of five years. KY Lee, chairman and CEO, BenQ said that their expansion strategy will be strongly supported with the acquisition of Siemens's mobile phones business. And added, "I welcome the addition of Siemens's management resources and look forward to working with the Siemens team on the combined platform."

BenQ will also acquire Siemens' manufacturing operations on three continents.

BenQ will be acquiring all of Siemens' development and manufacturing locations in Manaus (Brazil) and Kamp-Lintfort (Germany), along with headquarters functions as well as the sales and marketing organization. The factory in Shanghai (China), which is operated as a joint venture together with a Chinese partner, will also remain a development and manufacturing location. BenQ guarantees full utilization of the capacity at the location for a period of three years. Subject to the agreement of the partner in this joint venture, BenQ will also take over this capacity in the next step.

In the course of the transaction, Siemens will acquire new BenQ shares worth EUR 50 million and will be building upon BenQ as a preferred partner for end-to-end mobile communication solutions. 

The Supervisory Board of Siemens AG, Berlin and Munich, and the Board of BenQ have agreed to the transaction. The agreement remains subject to approval by a shareholders' meeting of BenQ.

Page(s)   1