Background: In 1996, Wahaha, Danone and BNP (Hong Kong) jointly invested in and incorporated 5 companies to manufacture Wahaha brand products, including purified water and eight-treasure porridge. Wahaha holds 49% equ...Background: In 1996, Wahaha, Danone and BNP (Hong Kong) jointly invested in and incorporated 5 companies to manufacture Wahaha brand products, including purified water and eight-treasure porridge. Wahaha holds 49% equity interests in these companies, while Danone later became the dominant shareholder with a 51% stake after acquiring shares held by BNP in the aftermath of the Asian financial crisis. Danone then proposed to transfer the Wahaha brand to a joint venture but did not succeed. Subsequently, a trademark usage contract was signed by both parties instead. In the ensuing years, the Wahaha Group established non-JV companies in west China, central China and the Three Gorges reservoir area. These companies had RMB 5.6 billion of total assets as of December 31st, 2006 and made a net income of RMB 1.04 billion in that year. On April 3rd, 2007, Danone intended to force a deal by which it could acquire 51% equity interests in those non-JV companies for a sum of RMB 4 billion. Wahaha Chairman Zong Qinghou later complained that he and Wahaha fell into a trap set up by Danone. Both parties have since engaged in a lengthy "war of words", thereby arousing a grand debate on China's FDI policies.展开更多
A peaceful resolution to the dispute between Wahaha and Danone can avoid great losses on both sides In early April, Zong Qinghou, BoardChairman and General Manager of
文摘Background: In 1996, Wahaha, Danone and BNP (Hong Kong) jointly invested in and incorporated 5 companies to manufacture Wahaha brand products, including purified water and eight-treasure porridge. Wahaha holds 49% equity interests in these companies, while Danone later became the dominant shareholder with a 51% stake after acquiring shares held by BNP in the aftermath of the Asian financial crisis. Danone then proposed to transfer the Wahaha brand to a joint venture but did not succeed. Subsequently, a trademark usage contract was signed by both parties instead. In the ensuing years, the Wahaha Group established non-JV companies in west China, central China and the Three Gorges reservoir area. These companies had RMB 5.6 billion of total assets as of December 31st, 2006 and made a net income of RMB 1.04 billion in that year. On April 3rd, 2007, Danone intended to force a deal by which it could acquire 51% equity interests in those non-JV companies for a sum of RMB 4 billion. Wahaha Chairman Zong Qinghou later complained that he and Wahaha fell into a trap set up by Danone. Both parties have since engaged in a lengthy "war of words", thereby arousing a grand debate on China's FDI policies.
文摘A peaceful resolution to the dispute between Wahaha and Danone can avoid great losses on both sides In early April, Zong Qinghou, BoardChairman and General Manager of
