Paris--French mobile company Orange reached a deal with Israel's Partner to retake control of its brand, it said in a statement Tuesday, as it seeks to move on from a major diplomatic spat.
Orange will pay up to 90 million euros ($100 million) to regain direct control of the brand in Israel within two years, which had been licenced to Partner until 2025.
The agreement sets out a 24 month time frame under which either company can formally renounce the previous deal, during which a market study will be undertaken on Partner's future positioning and activity under its own branding.
"If Partner does not exercise its right to terminate within 12 months, either Partner or Orange may terminate the Brand Licensing Agreement during the following 12 months," Orange's statement said.
"The agreement provides for total payments of 40 million euros to Partner from signing the agreement until completion of the market study, and an additional 50 million euros should the BLA be terminated within 24 months," it said.
Despite the looming renunciation of their original contract prematurely, executives said negotiations were cooperative and cordial.
"The discussions were pragmatic, carried out in an amicable atmosphere and the two parties have reached a satisfactory mutual agreement," Pierre Louette, Orange's vice director general, told AFP.
"We are pleased to have reached a new agreement with Orange further to our 17-year relationship with the brand and to have established a new framework for our future relationship with Orange," said Adam Chesnoff, chairman of Partner's board.
AFP
