The Chinese comsumer electronics and IT equipment conglomerate will assume responsibility for Philips' remaining Mobile Phones business, which currently has an annual turnover of approximately Euros 400 million ( about $500 million) and approximately 240 employees, mainly in Asia Pacific and Eastern Europe.

Terms of the deal were not revealed but the companies say it is expected to be completed by the end of the year, subject to the usual shareholder and government regulatory approvals.

Under the terms of the letter of intent signed by the companies Thursday (Oct.12), CEC will receive a global license to market and sell mobile phones under the Philips brand for the next five years.

Philips has been gradually winding down its mobile phones business over the past few years, but its semiconductors group, now NXP Semiconductors, continues to play a major player in chips for handsets.

By: DocMemory
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