Turkey’s Vestel, Japan’s Toshiba sign deal with growth plans for consumer TV business in Europe
BERLINTurkey’s Vestel announced on Sept. 1 a strategic brand license agreement with Toshiba Visual Solutions Corporation, a wholly owned subsidiary of Toshiba Corporation, centered on the production and sale of Toshiba-branded consumer TVs in the European market.
Vestel also stated on Sept. 2 that it had signed another deal to acquire stakes in the Poland-based Compal Electronics Europe in a move to expand in Europe and to realize its targets in line with the Toshiba agreement.
Vestel will be responsible for the production, sales, marketing, and supply chain functions in the European market for Toshiba branded TVs while working closely with Toshiba research, development and quality assurance resources, said the Sept. 1 statement.
The Vestel-Toshiba partnership will come into effect after obtaining consent from the authorities in line with the relevant applicable law and under the agreement, it added.
“With this strengthened partnership, we look forward to maximizing Toshiba’s potential for further growth and market reach. Already a renowned and trusted household name with a reputation for high quality, Toshiba will be positioned as our premier TV brand for Europe. Our aim is to increase the 5 percent of the market stake of Toshiba to increase. This deal will enable to climb further up in the Europe TV market, in which we have already has some 20 percent of share,” said Vestel Group of Companies CEO Turan Erdoğan.
Vestel also said it plans to create a European stance in line with the Toshiba deal and to make the former Toshiba plant in Poland’s Wroclaw a production and logistics hub both for Toshiba and Vestel.
“In this vein, Vestel Ticaret A.Ş., a 100 percent of stake of which is owned by Vestel, and Compal Electronics Inc., one of the major contract electronics makers in Taiwan and owns this plant, signed an agreement to acquire the TV assembly plant,” said the company in the Sept. 2 statement, noting that the deal will be applicable after the required permissions are granted and the conditions are met by all parties.