Israel's Electra sues China's Huawei over import contract

Israel's Electra sues China's Huawei over import contract
JERUSALEM, March 13 (Reuters) - Israel's Electra Consumer Products said on Tuesday it had filed an 80 million shekel ($23 million) lawsuit in Israel against China's Huawei Technologies, accusing it of breaching a contract to import electronics to Israeli customers.

Electra reported last month that Huawei had informed the company it had not met purchase targets for 2017, a criteria for extending the import agreement.

Electra says there was no reason to end the contract and that it was now suing Huawei in an Israeli court for "a fundamental breach of the cooperation and distribution agreement," according to a statement on the Tel Aviv Stock Exchange.

Officials at Huawei were not immediately reachable for comment.

Electra said its subsidiary that handles the import of smartphones, watches and other electronic devices from Huawei had sales of 87 million shekels in the first nine months of 2017.

($1 = 3.4431 shekels) (Reporting by Ari Rabinovitch and Steven Scheer Editing by Mark Potter)

2018-03-13 15:53:46

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