Control of the distribution and licensing rights of Reebok in China have been secured by Adidas following termination of Reebok’s existing joint venture, distribution and licensing agreements with New Point Industrial Ltd. Adidas will effectively take over the distribution of the brand from next Jan. 1 onwards. Financial details of the settlement with New Point will not be disclosed.
The move follows Adidas’ purchase of Reebok’s distribution rights in Russia last month, and is in line with the company’s strategy to have greater control over its brands globally. Adidas’ integration strategy for Reebok is projected to generate more than €200 million in revenue synergies by 2009.
