Danone and Wahaha agree ceasefire

Groupe Danone and Hangzhou Wahaha Group have agreed to end antagonism and temporarily suspend all lawsuits and arbitrations, stop all aggressive and hostile statements and create a friendly environment for peace talks, according to a joint statement.

This comes after many months of accusations between the two companies. In April, Danone accused Zong Qinghou, Wahaha’s founder, of setting up a parallel production and sales operation for the same products the joint venture makes. Zong has not denied the existence of the parallel network, but says Danone reneged on their agreement by acquiring rival businesses in China.
The dispute has drawn widespread attention as an example of the risks inherent in Sino-foreign joint ventures, but Danone recently offered a truce by suspending legal action in China after top French and Chinese leaders said they favoured an amicable resolution.
“Both parties will work together to further develop all entities operating under the Wahaha brands and contribute to develop the Sino-French friendship,” the two companies said. No indication has been given of a settlement.