Alliance and Acquisitions ch 12

Alliance and Acquisitions ch 12 - with profits of 130mm....

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Click to edit Master subtitle style 1/22/11 Alliance and Acquisitions Strategic Alliance Non-equity vs. Equity-based Alliance Strategic and Organizational Fit
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1/22/11 Opening Case: Danone and Wahaha
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1/22/11 Danone in China 1996, formed 5 JV (cost of 170mm) with Wahaha group (founded in 1987) 2006, 39 JVs together 1996 sales 100mm to 2.25 billion in 2006 From 1996 – 2006, Danone was paid 307mm in dividents
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1/22/11 Dispute By 2006 Wahaha has 70 subsidiaries, with 39 of them had JV with Danone 2006, Danone wanted to purchase Wahaha’s other subsidiaries with 500mm offer price Wahaha refused – book value of non- JV subsidiaries assets were 700mm
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Unformatted text preview: with profits of 130mm. Price earning ratio at 4. 1/22/11 Legal issues JV agreement: subsidiary JVS exclusive rights to produce, distribute, and sell food and beverage products under the Wahaha brand. Every product using Wahaha brand should be approved by the board of the master JV. Danone thus claimed the non-JV 1/22/11 Ending 2007- 2009, 21 lawsuits and arbitrations in British Virgin Islands, China, France, Italy, Sweden and the U.S. Danone spent 83m in legal fees for 3 years. 2009 Sept, Danone gave up 51% in the JV and sold it to Wahaha....
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Alliance and Acquisitions ch 12 - with profits of 130mm....

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