Dannon is driving the Chinese brands out of the market

It’s more a strategy to diminish the potential competitor than a normal business takeover. Dannon is suspected by Chinese business for intentionally eradicating the Chinese brands after its dismissal of 40% of the workers who used to work for Lebaishi, a falling well-known mark since its merge with Dannon.

It’s noted in other merge cases, such as Little Nurse, Supor, etc, that the Chinese brands are either frozen or vanished from the market once controlled by the international corporate giants.

http://finance.sina.com.cn/chanjing/b/20070105/08053219104.shtml;
http://finance.sina.com.cn/roll/20070406/21581318608.shtml;

Another story is going on. Dannon is now attempting to purchase the whole Wahaha group to prevent those Wahaha enterprises that are using the trademark but outside non-joint venture from using the trademark. After Dannon filed complaint against the Chinese CEO of Wahaha at Stockholm Arbitration Institute and sued the CEO’s daughter at California Court, the CEO resigned and blamed Dannon for oppressing and insulting him.

http://finance.sina.com.cn/chanjing/b/20070607/19313671346.shtml;
http://finance.sina.com.cn/review/zlhd/20070608/08053673049.shtml

Other actions may be waiting for Dannon. For instance, a shareholder of another leading milk producer “Bright” is going to sue Dannon for violation of security regulations by purchasing competing companies and damaging the interests of shareholders.

The dispute now looks like a soap opera. Wahaha has filed a complaint against Dannon at Hangzhou Arbitration Commission for termination of the trademark assignment agreement with Dannon. The complaint has been accepted. This is the third legal action around this dispute, apart from Dannon’s complaint at Stockholm and at US.

http://finance.sina.com.cn/chanjing/b/20070618/03041480354.shtml

Another similar case is Johnson’s purchase of Dabao.
http://finance.sina.com.cn/chanjing/b/20070407/02423480995.shtml

As a Chinese saying reveals, an intelligent will listen from both sides. Please see the comments from overseas.
http://www.chinalawblog.com/chinalawblog/2007/06/new_york_times_.html

The soap opera is going on. Wahaha announced that the someone misappropriate the name of the Joint Venture with Dannon to sue the State Trademark Office for not transferring the trademark. A Beijing court has accepted the complaint made in the name of the joint venture.
http://stock.hexun.com/column/detail.aspx?id=2475119

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