Wahaha rejects Danone plan
10 March 2008
A new cooperation plan put forward by French food giant Danone has been rejected by Wahaha, the Chinese beverage group, state media reported. Wahaha Board Chairman Zong Qinghou said the company "could not possibly accept" the proposal, which would see the two companies merge their businesses to form a new company, to be listed on the A-share market. Under the plan, Wahaha and Danone would each own 40% of the new company, with the remaining 20% of shares made public. Since May last year, the two companies have filed complaints and lawsuits against each other in China and overseas. Danone, which owns a 51% stake in a series of joint ventures with Wahaha, has accused the Chinese company of setting up independent companies and selling products identical to those sold by the JV.
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