Dutch electronics company Philips NV (PHG) Monday said it has agreed a license deal with Japan-based peer Funai Electric Co. (6839.OK) for its television activities in Mexico.

The deal was completed by the end of 2008 and took effect in March, a Philips spokesman told Dow Jones Newswires.

The agreement allows Funai to produce, distribute and market Philips-brand TVs in Mexico. The deal follows an earlier agreement between the two companies on the sale of Philips' TVs in North America.

In return, Philips will receive royalties for the TVs sold by Funai.

By Harm Luttikhedde and Maarten van Tartwijk, Dow Jones Newswires; +31-20-5715200; maarten.vantartwijk@dowjones.com