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BenQ buys Siemens' mobile phone business

BenQ has taken over Siemens' mobile phone business.

BenQ has taken over Siemens' mobile phone business. Local Siemens mobile phone owners won't be affected by the sale, however, with any existing warranty or service obligations to be honoured by the company, a Siemens spokesman said.

Taiwan-based BenQ will acquire Siemens' entire mobile phone business, including all production plants and more than 6000 employees. The Siemens mobile phone brand won't disappear just yet however, with BenQ having the rights to the name for the next five years.

The effect of the sale on local Siemens phone customers is expected to be minimal. Siemens Australia spokesman Brad Voss said any existing obligations (such as the company's standard 12 month warranty on new phones) Siemens had to customers in the Australian market would be fulfilled. Siemens would also honour any obligations for new handsets until 30 September this year, when it is expected BenQ will formally take over.

BenQ has been a small player in the global phone industry, but the acquisition sees them leapfrog into the top 10 list in most major global markets. As part of the deal, Siemens will acquire a 2.5 per cent stake in BenQ through the gain of roughly 50 million Euros worth of stock (AU$80.1 million).

The BenQ Group also produces other consumer electronic products like digital cameras, televisions, notebooks, projectors, scanners and LCD screens, and was expected to release its own line of mobile phones in Australia later this year. At the time of press there was no official word from BenQ as to how the Siemens acquisition affects its plans for the Australian release of its own phones. Siemens will now focus on its other company operations, which include telecommunications infrastructure, transportation, medical equipment and more.