A meeting has taken place between executives at Danone and its Indian joint venture partner Wadia Group in London, according to reports.
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India’s Economic Times said that the talks were designed to work out an end to the joint venture, however, so far, no agreement has been reached.
A statement from Wadia Group, issued yesterday (3 September) said: “Nusli and Franck met. Very friendly discussion. Talks are progressing.” It was referring to Wadia Group chairman Nusli Wadia and Danone chairman Franck Riboud.
The talks have now been extended for at least another day as the two sides seek a resolution.
Indian newspaper reports stated last week that Wadia could buy Danone’s stake in the venture at a discount of as much as 20% to the market price.
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By GlobalDataIn June it became apparent that the French food group could be ready to pull out of its biscuit production joint venture with Wadia.
Relations between the two partners have soured during the past year after the Wadia group took Danone to court in Mumbai, alleging that the French company’s strategic stake in biotech firm Avesthagen violated a non-competitive clause in their joint venture agreement.
It is thought Danone may be keen to build an independent Indian operation, and has been growing “impatient” over the Wadia issue.
Danone’s share in the venture is thought to be worth more than US$245m.
