SWEDEN/FINLAND: Cloetta Fazer to de-merge

By: just-food.com | 16 June 2008

The strained relationship between the owners of Cloetta Fazer, the Nordic confectionery group, will come to an end after eight years when the company splits into two.

The principal owners of Cloetta Fazer, Oy Karl Fazer and AB Malfors Promotor, who collectively hold 78.5% of voting rights have struck a deal that will see the group become two companies - Cloetta and Fazer Confectionery.

Cloetta will apply for listing on Stockholm's OMX Nordic Exchange and Fazer Confectionery will be consolidated as part of Finland's privately-held Fazer Group.

The relationship between the two families who own the largest proportion of Cloetta Fazer shares - Finnish Fazer and the Swedish Svenfelt - has been rocky.

In 2003, disagreements over the distribution of shares emerged when the Svenfelts took legal action to prevent the Fazer family increasing its shareholding in the company.

The Fazer family holds 44.7% of Cloetta Fazer, while the Svenfelt family has a 39.6% share.

Sectors: Confectionery

Companies: Cloetta Fazer, Fazer Group