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Danone also announced its settlement with the Chinese company at its website on the same day.

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According to a press release posted at Danone's website, Danone and Wahaha will conclude their existing joint venture relationship. The French company has agreed to sell its 51 percent stake in the Danone-Wahaha joint ventures to Chinese partners.

All legal proceedings related to the disputes between the two partners will be ended if this agreement is executed, said the press release.

"The collaboration between Danone and Wahaha helped to build a strong and respected leader in the Chinese beverage industry. We are confident that Wahaha will continue to be highly successful under its future management guidance," said Frank Riboud, CEO and Chairman of Danone,"Danone has a longstanding commitment to China where it has been present since 1987 and we are keen to accelerate the success of our Chinese activities."