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:
“There is no such thing as “the Queen’s English.” The property has gone into the hands of a joint stock company and we own the bulk of the shares!”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)
“I am being given, if I may venture the expression, birth into death, such is my impression. The feet are clear already, of the great cunt of existence.”
—Samuel Beckett (1906–1989)
“It has lately been drawn to your correspondent’s attention that, at social gatherings, she is not the human magnet she would be. Indeed, it turns out that as a source of entertainment, conviviality, and good fun, she ranks somewhere between a sprig of parsley and a single ice- skate. It would appear, from the actions of the assembled guests, that she is about as hot company as a night nurse.”
—Dorothy Parker (1893–1967)