Munich-based Siemens AG will purchase the GSM (global system for mobile communications) phone manufacturing business of Stuttgart-based Bosch Telecom GmbH and Pandrup, Denmark-based affiliate Bosch Telecom AS, Bosch said in a statement yesterday.
On Friday, the companies signed an agreement in which 400 employees in Germany and Denmark who are involved in the development of mobile phones will be transferred to Siemens.
The future of the company's production facilities, based in Pandrup, was unclear. Negotiations for the phone production are currently being held with interested parties, according to the statement.
The production of the phones, currently in Pandrup, will be transferred to another company, Bosch said in the statement.
Financial details were not immediately available.
Development and production operations will be transferred to Siemens at the end of April. The deal is subject to the standard approval by regulatory authorities. Siemens manufactures a wide range of business and information technology-related products.