BenQ Corporation consists of three main business groups — Computing Products, Digital Media and Mobile Business. Although these business groups encompass a broad range of products, each retains a focus on providing consumer-oriented solutions designed especially for the digital lifestyle. 2004 revenues exceeded US$5.1 billion dollars.
In order to become an international brand, BenQ purchased Siemens in 2005 June. BenQ got the patent skill to produce 2G and 3G from Siemens. Moreover, BenQ could use brand name Siemens as BenQ-Siemens to launch their mobile phone. If the plan could go smoothly, BenQ mobile phone would become the top 4th branding in the worldwide. BenQ would not be only OEM, ODM, or local company anymore.
However, the plan is fail. BenQ got a huge loss from this M&A, over $10billion.
The reasons that BenQ failed from this M&A are cultural understanding and detail plan before M&A. BenQ wanted to be an international brand, so they made a rash decision. BenQ thought they could transfer their successful experience of Asia to Siemens. However, there were so many unpredictable factors, such as culture in Europe and the truth situation of Siemens. The loss of Siemens is much more than what BenQ thoughts before merging.
So the next step they will do is to spin off BenQ, change its name. All of you could read the news to get more information about their new milestone.
Reference: http://www.itworld.com/Man/3920/070425benq/
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