Philips Signs Last Of Its Phone Business Over To CEC

Written by Adam Gosling

Tuesday, 13 February 2007

The steadily rationalising Royal Philips Electronics of the Netherlands has signed a definitive agreement to transfer the last of its remaining Mobile Phone activities to China Electronics Corporation (CEC). The sale means that CEC will take over the responsibility for Philips' Mobile Phones business, which had 2006 sales of approximately EUR 320 million and has approximately 240 employees, mainly in Asia Pacific and Eastern Europe. The "Xenium" brand, which is associated with long-battery life, will be transferred to CEC under the terms of the agreement. CEC will receive an exclusive license to market and sell mobile phones under the Philips brand for the coming five years. THe deal also includes a handful of phone-related patents that will be transferred and licensed to CEC. In addition, Philips will transfer to CEC its existing marketing network in some key countries for the mobile phone business, as well as its 25% equity stake in Shenzhen Sangfei Consumer Communications Co. Ltd. Conditional on shareholder, government and regulatory approvals the transaction is expected to be closed by the end of the first quarter 2007. Related news items LG.Philips Cracks The 100 Inch LCD -04/06/2006 PHILIPS 3D SCREEN SOLUTION FOR MOBILES -28/05/2005 Newer news items Mobile Speakers For You Mobile Phone -25/02/2007 iPhone Fiasco Finished -21/02/2007 Phone Makers Accused Of Tween Targetting -18/02/2007 Nokia Readies To Trim Workforce -18/02/2007 New AMD Chip For Handhelds -13/02/2007 Older news items Samsung Quits Notebook Business -29/01/2007 Nokia New Year Party Attracts Millions -02/01/2007 Just For The Record: No Ferrari Laptops Here -02/01/2007 Palm Licenses Palm OS -12/12/2006 Enterprise Mobility To Grow At 9.5%: IDC -05/12/2006 Tag This Now: