Danone offers truce

Danone is reported to be looking for an amicable solution to its ongoing dispute with its Chinese joint venture partner, the Wahaha group. The dispute began earlier this year.

In April, Danone accused the founder of the Chinese company, Zong Qinghou, of establishing parallel production and sales facilities for the same drinks products as are made by the JV, which leads the Chinese mineral water market. Zong, however, claims that Danone acted in bad faith by acquiring rival businesses in China, effectively reneging on their deal.
Danone claims to have suspended a number of lawsuits against the company and has said it will defer those remaining if Wahaha enters into negotiations to secure the future of the JV. Meanwhile, a trade union that claims to represent the company’s workers, has won an injunction to freeze certain of the JV’s assets.