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BenQ buys Siemens mobile phones unit
BY OUR TECHNOLOGY CORRESPONDENT
14 June, 2005: BenQ Corporation of Tawain has agreed to buy out the Mobile Devices business from Siemens AG of Germany. The transaction is expected to be completed by September 30 this year, pending shareholder and regulatory approvals.
The transaction is the first of its kind and scale in Taiwan. The acquisition makes BenQ a global company with Asian and substantial international management. The company will have its headquarters at Munich in Germany.
BenQ will acquire manufacturing facilities of Mobile Devices of Siemens in Kamp-Lintfort, Germany and Manaus, Brazil; for the production site at Shanghai, there will be a manufacturing agreement due to the Joint Venture structure of the Shanghai enterprise. R&D centers in Munich, Ulm and Kamp-Lintfort, Germany; Beijing, China; Aalborg, Denmark; 8.4% shareholding in Symbian subject to approval by Symbian's shareholders.
Siemens AG said it believes in the future outlook of the Mobile Devices business and will continue to support the business. Siemens AG will invest €50 million in newly issued BenQ shares to become a shareholder in BenQ. In addition, Siemens will provide BenQ with net funds totaling approximately €250 million for ongoing support of the MD business, for the purposes of which include:
Siemens and BenQ will also establish an end-to-end customer solutions committee. Some elements of the partnership include:
1. Joint customer approach for joint end-to-end solutions
2. Joint research and development efforts in mobile communications
3. Joint global sales efforts with operators
4. Co-operation between Siemens' infrastructure business and BenQ's terminals business for IP sharing, testing and interoperability
5. Siemens will enter into a comprehensive non-compete agreement with BenQ in regards to the mobile phone business
6.Brand license rights for Siemens brand and development of the BenQ-Siemens co-brand.
BY OUR TECHNOLOGY CORRESPONDENT
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