French food giant Danone said today it has ended its longstanding feud with Wahaha, China's largest soft drink maker, by agreeing to sell its 51 per cent stake in their joint ventures.
The "amicable settlement" between the companies, which together ran 39 joint ventures, is subject to Chinese regulatory approval but has the support of Paris and Beijing, the companies said in a joint statement.
"The completion of this settlement will put an end to all legal proceedings related to the disputes between the two parties," they said.
The statement did not give any financial details of the deal, and Wahaha spokesman Shan Qining declined to release any figures.
The feud began when Danone said it had discovered that Wahaha chairman Zong Qinghou had set up an entire production and distribution network in parallel to the French firm's joint ventures with Wahaha.
In mid-2007 the French firm sought an arbitration ruling, accusing the Chinese beverage giant of breach of agreement by selling Wahaha-branded drinks without its permission.
"The collaboration between Danone and Wahaha helped to build a strong and respected leader in the Chinese beverage industry," Danone Chairman and Chief Executive Franck Riboud said in the statement.
