Siemens to Sell Mobile Phones Unit to BenQ

Siemens has announced its decision to sell its loss-making mobile phones unit to Taiwanese technology group BenQ at a cost of $ 429 million.

Siemens will acquire 50 million euros’ worth of new BenQ shares as part of the deal, which it hopes to close in its fiscal fourth quarter to end-September, the German conglomerate said in a statement.

The agreement, which ends months of uncertainty over the future of the unit, is subject to approval from BenQ’s shareholders and anti-trust authorities.

BenQ will have rights to use the Siemens brand and name for five years and the business will be headquartered in Munich, Germany.

BenQ has announced a news conference on its alliance with Siemens at 3PM local time.