Hangzhou Wahaha Group and Groupe Danone to talk peace

Complying with the expectation of both Chinese and French governments, both Wahaha Group and Groupe Danone agree to finish antagonism and return back to peace talks.

A press statement released said both parties agree to temporarily suspend all lawsuits and arbitrations, stop all aggressive and hostile statements and create a friendly environment for peace talks.

Both parties agree to carry out the talks on the basis of adhering to the principles of equality and mutual benefits, to seek common grounds by tolerating minor differences, to reach mutual understandings and to strive for the success of peace talks.

The statement said they will work together to further develop all entities operating under the Wahaha brands and contribute to develop the Sino-French friendship and promote the co operation between the companies of the two countries.

Groupe Danone has previously signed a series of joint venture contracts with Mengniu Dairy Group in December 2006. Some cooperation as outlined in these contracts has currently begun.

However, Danone said since some conditions for this cooperation are not sufficiently advanced, and since the prerequisites for further investments have not been met within the agreed timeframe, both parties agreed the joint venture will automatically be terminated on December 18th, 2007.