The deal is subject to the approval of the Competition Board in Turkey, but Benetton stores in Turkey will continue its services without interruption.
Benetton Giyim operates 121 stores in Turkey, the Central Asian Turkic republics, and Turkish Cyprus. Benetton Turkey employs more than 3,000 people in the fields of production, retail and management.
Benetton entered Turkish market in 1985
United Colors of Benetton entered the Turkish market in 1985 as the first international retail brand, by delivering the production and distribution rights to Altınyıldız Group. In September 1991, Benetton Italy and Altınyıldız Group, which changed its name to Boyner Holding, started a joint venture named Boğaziçi Hazır Giyim.
Benetton Group assigned Boğaziçi Hazır Giyim, which is one of the two successful licenses of the company in marketing and production, to build up store chains in Turkic republics of Central Asia.
Boyner Holding acquired 50 percent of the shares of Boğaziçi Hazır Giyim, which is responsible for the commercial activities of United Colors of Benetton and Sisley, in 2005.
The stake sale came as both companies have been restructuring development strategies and future growth plans, said Cem Boyner, the chairman of Boyner Holding, in a written statement July 20.
“Boyner Holding has taken this decision due to the acquisition of YKM, preferring to make investments into its own brands and leaving businesses that it does not have full control over in due course,” he said.
Benetton has also started to buy back all the stakes that it does not own in its companies, and the sales transactions between Boyner and Benetton were realized as the expectations and demands of both firms coincided at the same period, he added.
Noting that business relations going back to 1985 had been very successful and efficient between the two, he said that close relations with Benetton would always continue.
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Source : hurriyetdailynews.com
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