Siemens has announced that it is to sell its loss making mobile phone arm to Taiwanese computer manufacturer BenQ for 350 million euros ($429 million).

Siemens will acquire 50 million euros' worth of new BenQ shares as part of the deal, which it hopes to close in its fiscal fourth quarter which runs July to September, the German conglomerate said in a statement.

The agreement, which ends months-long uncertainty over the future of the unit, is subject to approval from BenQ's shareholders and anti-trust authorities.

BenQ will have rights to use the Siemens brand and name for five years and the business will be headquartered in Munich, Germany.

A spokesman said Siemens' cordless-phone business was not part of the deal with BenQ.