Talks between the two largest shareholders in Cloetta Fazer will “intensify” in a bid to resolve the long-running dispute over ownership of the Nordic confectionery group, its chairman has told just-food.
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Cloetta Fazer has asked two directors to act as mediators in fresh discussions between shareholders Malfors Promotor and Karl Fazer, which together make up around 80% of the voting shares in the business.
The two sides are in dispute over the size of their respective shares in Cloetta Fazer, which they attained after the 2000 merger of Swedish candy firm Cloetta and Finland’s Fazer Konfektyr.
Malfors Promotor and Karl Fazer were respective shareholders in the two companies prior to the merger and, when the deal was signed, both sides agreed limit their stake in the new company to under 40% of the voting shares.
Cloetta Fazer chairman Anders Dreijer said the dispute arose in 2005 when Karl Fazer increased its share in Cloetta Fazer. Malfors Promotor believes the 2000 deal means neither side can change the size of its stake.
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By GlobalDataToday (25 January), Cloetta Fazer – the Nordic region’s largest confectionery firm – named directors Lennart Bylock and Wilhelm Lüning as mediators for a round of fresh talks between the two shareholders.
“Neither party wants to sell its stake and the two independent directors will take on roles as mediators in intensified discussions,” Dreijer told just-food.
Dreijer said the company wants to quickly find a solution to the dispute, which, he admitted could have an impact on the business in the long run.
“In the long run, there is a risk that this could eventually affect the development of the business,” Dreijer said.
Cloetta Fazer has been busy expanding its business in recent months. In December, the company agreed to buy Finnish functional gum maker Fennobon. In October, Cloetta Fazer acquired Swedish confectionery firm Karamellpojkarna.
