The Taiwan-based BenQ Group, which also produces mobile phones in addition to other consumer electronic products, will acquire Siemens' entire mobile phone business with more than 6,000 employees worldwide. The business will be headquartered in Munich, Germany. The closing of the deal is expected in the fourth quarter of Siemens' fiscal year 2005.
"We will be uniting our strengths with BenQ's highly successful consumer business," said Klaus Kleinfeld, the CEO of Siemens AG. "In addition, we also complement one another perfectly in terms of geography. 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."
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 5 years. BenQ chairman and CEO K.Y. Lee said "I welcome the addition of Siemens's management resources and look forward to working with the Siemens team on the combined platform. I am fully convinced that the acquisition provides many opportunities to strengthen our business in the consumer market and I am sure that our shareholders will share this opinion."
With this acquisition, BenQ will advance to become one of the world's leading mobile phones vendors. In addition to its GSM mobile phones activities, the Taiwan-based company is also a leading vendor of consumer electronic products, such as LCD screens, notebook computers, cameras, and scanners. The acquisition will strengthen BenQ's GSM mobile phones business. BenQ intends to expand mobile devices into a core business in the future.
On its Asian home market, BenQ already numbers among the fastest-growing vendors in the mobile phones segment. The partnership with Siemens will enable BenQ to implement its plans for international expansion. Siemens offers BenQ a globally operating organization that enjoys leading market positions in both Western and Eastern Europe as well as in the growth market of Latin America.
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 3 years. Subject to the agreement of the partner in this joint venture, BenQ will also take over this capacity in the next step.
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