Electronics Production |
Elcoteq suspend merger talk with Arima
Finland based EMS provider Elcoteq has temporarily discontinued merger talks with Taiwan based ODM maker Arima Communications.
According to sources cited by Taiwan based news web DigiTimes, merger talks between the companies have been going on for three years. Arima planned to buy certain assets of Elcoteq’s handset production. Elcoteq on the other hand preferred to sell the handset business bundled with some other businesses. The companies disagreed on the scale of equity acquisition, forcing them to suspend all merger talks. Instead of the deal going through, Arima will now switch some of its mobile handset production for LG Elctronics in Latin America from Flextronics to Elcoteq’s plant in Brazil, DigiTimes reports.
