Danone and Wahaha Group to End Joint Venture
Danone has agreed to sell its 51% interest in the Danone-Wahaha joint-ventures to its Chinese partners. The execution of this agreement will put an end to all legal proceedings related to the disputes between the two parties.
30 Sep 2009 --- Danone and Wahaha Group have reached an amicable settlement, subject to the approval of the Chinese Authorities. The settlement has been the outcome of renewed efforts of both parties to put a final end to their dispute through productive negotiations that have taken place in a spirit of mutual respect and with the support of both the Chinese and French governments.
As part of the settlement, Danone and Wahaha are to conclude their existing joint venture relationships. Danone has agreed to sell its 51% interest in the Danone-Wahaha joint-ventures to its Chinese partners. The execution of this agreement will put an end to all legal proceedings related to the disputes between the two parties.
Commenting on the transaction, Franck Riboud, CEO and Chairman of Danone, stated: “The collaboration between Danone and Wahaha helped to build a strong and respected leader in the Chinese beverage industry. We are confident that Wahaha will continue to be highly successful under its future management guidance. Danone has a longstanding commitment to China where it has been present since 1987 and we are keen to accelerate the success of our Chinese activities, in keeping with our mission of bringing health through food to the largest number of people.”
Mr. Zong Qinhou, Chairman of the Wahaha Group said: “China is an open country. Chinese people are broad-minded people. Chinese companies are willing to cooperate and grow with the world’s leading peers on the basis of equality and reciprocal benefit.”
