Danone-Mengniu partnership not approved

French food and beverage group Danone and Chinese dairy Mengniu jointly announced on Wednesday that their joint venture was automatically terminated as it did not receive government approval during its application period, China Business Net reported (in Chinese). Danone and Mengniu signed a contract to form yoghurt-making partnership in December last year. Ongoing disputes between Danone and Hangzhou-based drink maker Wahaha may have influenced on government decision, a person familiar with the situation was quoted as saying. However, Mengniu will still be responsible for manufacturing and marketing Danone's yoghurt brand, which was transfered from Bright Dairy, another large domestic dairy. Danone ended its 10-year cooperation with Bright Dairy in October.