The new deal, released by Partner to the Tel Aviv Stock Exchange, provides both Orange and Partner the right to terminate their current cooperation, under which Partner operates under Orange’s brand in Israel.
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Orange and Israel’s Partner Communications agreed terms that could see an end to their brand licensing agreement, following a well-publicised row in the country. If it doesn’t exercise that right, either Partner or Orange will have the right to terminate the deal during the following 12 months.
Richard has maintained that his comments were not political, and said in a press conference at the time that “Orange doesn’t support any form of boycott, in Israel or anywhere else in the world”.
The CEO later claimed he was misquoted, and days later rushed to Israel for a meeting with Prime Minister Benjamin Netanyahu.
Globes report says that the two companies will use a detailed market study to assess Partner’s position within the dynamics of the Israeli telecommunications services marketplace.
Should the branding agreement be terminated, Orange would rebrand its research and development operations in Israel under its own name.
Attempts by the French company to recover use of its Orange brand in Israel had led to major diploma …
Richard later said his comments were misinterpreted and that he didn’t support any kind of boycott.
Richard told a gathering in Cairo in early June that he would break off Orange’s relationship with Partner if it weren’t for the fact that the Israeli company would likely sue.
Speaking to AFP about today’s news, Pierre Louette, Orange’s deputy CEO, said: “The discussions were pragmatic, conducted in a positive atmosphere, and the two parties reached a mutually satisfactory agreement”.
The new deal replaces a recently-signed 10-year renewal of the brand agreement. He travelled for talks with Israeli leaders in a bid to smooth over the controversy.
Orange, a partially state-owned French telecoms group, insisted the parting of ways was cordial.
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“It was a situation inherited from a previous contract that gave a near-eternal right of usage” of the name, added Louette.
