German PC maker Siemens Nixdorf (SNI) and Acer have broken off their talks to sell SNI's PC manufacturing division to the Taiwanese company.
The two vendors signed an agreement in April that called for Acer to take over SNI's PC production facility in Germany. The deal would have given SNI the necessary volume it needed to produce PCs more cheaply on a global scale.
Negotiations fell through because Acer and SNI could not agree on financial terms, according to statements from both SNI and Acer. The financial crisis in Asia and Russia also played a role, Acer said, forcing it to exert more caution in its financial investments.
The climate has forced Acer to refocus its corporate strategy, especially in the area of semiconductors. "Acer is now committed to giving top consideration to ASMI (Acer Semiconductor Manufacturing) in terms of supplying working capital and making all necessary financial arrangements," said Simon Lin, Acer president and chief executive officer.
Under the proposed agreement, Acer would have taken over PC production, distribution and research and development, while SNI retained control of sales, marketing and product planning and specifications.
Combined, SNI and Acer would have produced roughly 8 million PCs annually, officials said.