BenQ Share Shines in the market after Siemens deal

BenQ Share Shines in the market after Siemens deal

Siemens announced yesterday that they were going to sell bulk of their mobile business to the Taiwanese mobile giant BenQ. The news has now led to rise in the share prices of the BenQ Company, which is the biggest manufacturer of mobile phones in the Taiwan. The shares of the company rose as much as 2.5% in the markets in Taipei.

They were trading at NT$32.70 as of 9:18 a.m. Siemens is a veteran in the mobile market having manufacturing the devices since almost 2 decades. However, competition from the companies like Motorola and Samsung has led to a stage where it is no longer selling as many units as they would have preferred.

It announced plans to get out of this business quite sometime back and the deal was expected to happen anytime now. They would be paying BenQ around USD 308 million to take on the unit, which is making heavy losses. They would also be buying a stake in the company for around 50 million euros.