Did BenQ buy Siemens?

Siemens is one of the largest electrical and electronics companies in the world. Products are used in various industries such as information and communication, automation and control, power, transportation, medical, lighting and household appliances, and its core business areas are infrastructure construction and industrial solutions. Founded in 1984, BenQ initially focused on computer peripherals and gradually expanded into optoelectronics, communications and digital multi-industry.

In December 2001, BenQ officially launched its own brand "BENQ", covering LCD monitors, CRT monitors, plasma displays, projectors, digital hubs, optical drives, recorders, optical drives, digital cameras, scanners, mobile**, broadband networks and other diversified product lines. BenQ only acquired a division of Siemens, not the entire company. In 2005, the daily loss of Siemens' mobile phone division was about 1.5 million euros, and the operating loss in the second quarter of that year reached 100 million euros, compared with a loss of 100 million euros in the first fiscal quarter of the same year.

On June 8, BenQ officially announced the acquisition of Siemens' mobile phone division for 100 million euros, making it the world's fourth largest mobile phone manufacturer. But it wasn't until September 28, 2006, that BenQ had to announce that it would stop injecting capital into its German mobile phone subsidiary, Benq Mobile, which would file for bankruptcy protection, due to a black hole of mounting losses and pressure from shareholders. BenQ Dentsu thinks:

The chances of making this business work well are already very slim. At the end of the year, BenQ Dentsu Chairman Li Kunyao appeared in Beijing and publicly admitted that BenQ had lost 800 million euros since the acquisition of Siemens' mobile phone division last year, and the acquisition decision "has proven to have failed" a year later. BenQ Dentsu has now stopped injecting capital into BenQ Mobile and has laid off 1,900 German employees, Li said.

He said that since there are still some disputes between BenQ and Siemens, the two sides are currently looking for legal arbitration. At the same time, Li revealed that in 2007, BenQ will mobilize huge funds to rebuild BenQ's mobile phone brand, focusing on the Asia-Pacific region, and the merged BenQ Shanghai Jinqiao mobile phone production plant will be officially put into operation in the third quarter of 2007. Satisfied.

BenQ acquired Siemens' mobile phone business.

On June 7, 2005, BenQ announced the acquisition of the mobile phone business of Siemens in Germany, which is one of the largest acquisitions in Asia in the past years, which will also make Benq the fourth largest mobile phone brand in the world, and the annual revenue is expected to exceed 10 billion US dollars (about 83 billion yuan) after the merger. BenQ is also licensed to use the Siemens brand for eighteen months, while the Benq-Siemens dual brand is five years.

First, the evaluation of Siemens' mobile phone brand is misguided.

As one of the most well-known brands in Germany, Siemens enjoys a good reputation in Germany, Europe and even the world, but its mobile phone products are an exception. Siemens mobile phones are not only in a loss-making state, but also the reputation of its products among users is not good, spending hundreds of millions of euros to buy a mess makes BenQ have a hard time on the first day after the merger. 2. Misunderstanding of German laws and systems The superior welfare system in Europe and the resulting form of work have led to the low competitiveness of Siemens' mobile phone department, and the high wages and benefits are undoubtedly a heavy burden for BenQ.

However, Benq Mobile's layoffs in Germany were met with strong resistance from the union. If BenQ had done enough research on German laws and regulations before the merger, it might have re-estimated the feasibility of the merger. Third, the product layout is wrong In the short-lived year of the BenQ Siemens brand, although it has also launched new products such as E61** mobile phone, EL71 slide mobile phone, SL75 AL21 large and small stone machine, but the number of new products launched is not much, the cycle is also long, and the face is individual users, the potential consumer group is limited, and the new BenQ Siemens products have failed to form combat effectiveness.

Fourth, the decision-making and management system is more complicated BenQ's acquisition of Siemens mobile phones, BenQ transferred part of the equity to Siemens, and Siemens transferred the assets and personnel of the mobile phone division to BenQ, and provided BenQ with an additional 100 million euros in cash and services as a dowry.