When the JV was established in 1996, Wahaha had a controlling shareholding of 49%, while Danone and Peregrine had 25.5% each through a Singapore-registered investment company Jinjia. However, Danone became the largest shareholder (51%) of the JV in 1998, after it bought out Peregrine's shareholding in Jinjia.

Theoretically, 51% ownership guarantees the control of a firm, as it enables the largest shareholder to control the board of directors. Did Danone manage to control the JV through its majority shareholding? Why or why not?

Answer rating: 100% (QA)

Answer No Danone did not manage to control the JV through its majority shareholding Wahaha had the c... View the full answer