Siemens, Mannesmann join forces

DUESSELDORF, (Germany), MARCH, 20. Electronics company Siemens AG is planning to form an automotive technology venture with German engineering and telecommunications firm Mannesmann AG, the companies announced on Monday.

The venture will be the world's largest supplier of high tech electronics systems for cars and trucks, with sales of roughly $6.79 billion and 50,000 employees worldwide.

Each company will hold 50 per cent of the joint venture, which brings together Siemens' automotive branch and Mannesmann's automotive unit, VDO Kienzle. The new entity, which will take the name Atecs Siemens Automotive AG, will begin operation on July 1 and the management hopes to boost sales to $13.58 billion in five years.

Mannesmann AG's telecommunications business is being acquired by British mobile telecommunications giant Vodafone AirTouch. Before the deal, Mannesmann had already planned to spin off its engineering and automotive branches this summer.

- New York Times

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Section  : Business
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