Abstract

The case describes BenQ's acquisition of the loss-making Siemens mobile devices division. It describes the events after the acquisition and leading up to the bankruptcy of BenQ Mobile, the new company formed after the acquisition. It then analyzes the reasons for the failure of the acquisition, and also details the criticisms that BenQ and Siemens faced following the bankruptcy announcement. The case ends with a brief discussion on the financial situation and future plans of BenQ and Siemens.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the competitive situation in the mobile phone industry
• Understand the synergies required to make a successful acquisition
• Analyze the reasons for failure of some acquisitions.

Keywords

BenQ Corp, Siemens AG, Mobile devices, Failed acquisition, Synergies, Bankruptcy, Telecommunication industry, Restructuring