Wahaha Joint Venture Company
The Wahaha Mikado Joint Venture Company is a food and beverage joint venture company established between the Hangzhou Wahaha Group, the largest beverage producer in China, and Danone, one of the world's largest food conglomerates.
The companies have been partners since 1996 in a business model Forbes magazine hailed as a "showcase" joint venture.
As the businesses expanded and became more complex, Danone had made several attempts to buy out Wahaha, but was rebuffed. Danone and Wahaha's General Manager Zong Qinghou signed a deal in December 2006, allowing Danone to buy a majority stake in the non-JV operations. However, Zong had second thoughts about the deal and reneged, claiming the offer was underpriced. It is alleged that he wanted to squeeze a higher price out of Danone.
For a trademark dispute, Danone filed for arbitration in Stockholm on 9 May. On 4 June, Danone filed suit in Los Angeles Superior Court against Ever Maple Trading and Hangzhou Hongsheng Beverage Co Ltd, companies controlled by Zong's wife and daughter who run the two companies.
On 21 December 2007, Danone and the Chinese partner agreed to suspend their legal battle and resume negotiations.
Read more about Wahaha Joint Venture Company: Background, Beginning of Public Row, Timeline
Famous quotes containing the words joint, venture and/or company:
“I learned from the git-go in the joint to get in touch with the soft, nurturing side of myself, the feminine side.”
—Wesley Strick, U.S. screenwriter, and Martin Scorsese. Max Cady (Robert DeNiro)
“Had his other friends been as diligent and ardent as I was, he might have been almost entirely preserved. As it is, I will venture to say that he will be seen in this work more completely than any man who has ever yet lived.”
—James Boswell (1740–1795)
“The company of women of fashion will improve your manners, though not your understanding; and that complaisance and politeness, which are so useful in men’s company, can only be acquired in women’s.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)