Siemens sells its phones

7 June 2005

The Taiwan-based BenQ Group is to buy Siemens’ entire mobile phone business for 50 million Euros.

As part of the deal, BenQ will acquire all of Siemens’ development and manufacturing locations in Manaus, Brazil and Kamp-Lintfort, Germany, along with its headquarters in Munich and its sales and marketing organisations.

A factory in Shanghai, China, which is operated as a joint venture together with a Chinese partner, will remain as a development and manufacturing location.

In addition to the factories, Siemens has also given the BenQ Group the rights to its brand and name, which BenQ will be allowed to use for five years.

The closing of the deal, which will affect over 6,000 Siemens employees worldwide, is expected to take place in the fourth quarter of Siemens’ 2005 fiscal year.