Strategic License Agreement between Arçelik and Changhong

Arçelik Signs Licensing Agreement with Changhong

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

Content of the Agreement

Arçelik's subsidiary Grundig Multimedia, based in Zonguldak, will have the right to produce and sell certain 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 domestic appliances.

Specifically, in the Chinese and Russian markets, the production and sale of products in all categories, including small domestic appliances, will be carried out by Changhong under the Grundig brand.

Financial Terms and Extension Possibilities

It was stated in the announcement that the contract, based on licensing fee payments, could be extended for another 2 years upon mutual agreement of the parties. During the transition period, Grundig Multimedia AG and its subsidiaries may continue to produce, distribute and sell Grundig-branded products in certain markets for a limited time. It was mentioned that this period would end no later than December 31, 2026, for all markets granted exclusivity.

This licensing agreement aims to strengthen the global presence of Grundig-branded products outside Turkey. Operations of the Grundig brand 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 influence of both companies. For investors, such partnerships are seen as significant steps towards the companies' growth objectives.