Bosch has announced that it is to pay €3billion (£2.35billion) to end a near half-century partnership set up to develop its well-known white goods ranges.
It is to buy fellow German industrial giant Siemens’ half-share in a joint venture company set up by the two.
The AFP news agency reported from Berlin this morning that Siemens is abandoning the joint operation in order to concentrate on its core businesses, including operations in the energy sector.
The collaboration between the two is currently the biggest player in Europe’s white goods sector, employing more than 50,000 people.
The joint venture, known as Bosch und Siemens Hausgerate (BSH), will still market a range of appliances, such as washing machines, fridges, irons and vacuum cleaners using the Siemens brand.
Bosch chief executive Volkmar Denner said: “BSH has been a successful and profitable company for many years.
“Strategically and technologically, it is a perfect match for the Bosch Group.”
Regulators must give final approval to the deal, and if they approve it, the reorganisation will be completed in the first half of next year.