Strategic License Agreement between Arçelik and Changhong

Arçelik Signs License Agreement with Changhong

Arçelik (ARCLK) has signed an important licensing agreement with Hong Kong-based consumer electronics and white goods company Changhong. This contract will take effect on January 1, 2026, and will be valid for 3 years.

Content of the Agreement

Arçelik's subsidiary Grundig Multimedia, located in Zonguldak, will have the right to produce and sell specific product groups in the categories of white goods, air conditioning, and consumer electronics under the Grundig brand in Europe, CIS, and APAC regions, excluding small home appliances, as part of this agreement with Changhong.

Especially in the Chinese and Russian markets, all categories of products, including small home appliances, will be produced and sold by Changhong under the Grundig brand.

Financial Terms and Extension Options

In the statement made, it was noted that the licensing fee-based agreement could be extended for an additional 2 years upon mutual consent of the parties. During the transition period, Grundig Multimedia AG and its subsidiaries will be able to continue the production, distribution, and sale of Grundig-branded products for a limited time in certain markets. It was stated that this period would end by December 31, 2026, at the latest for all markets granted exclusivity.

This licensing agreement aims to strengthen the global presence of Grundig-branded products outside of Turkey. Grundig's operations in the Turkish market will continue as they are.

Conclusion

This strategic licensing agreement between Arçelik and Changhong has the potential to enhance the international market influence of both companies. Such partnerships are considered significant steps towards achieving the growth objectives of the companies for investors.