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Scandal-tainted Japanese confectionery company Fujiya has revealed that its cross-shareholding relationship with Morinaga & Co has been terminated.

In 2005 the two confectioners entered into a tie-up agreement that saw each hold 5m shares in the other. Fujiya and Morinaga also shared joint distribution channels. The companies reached an agreement to end this relationship today (14 March).

Following a scandal concerning Fujiya’s use of out-of-date ingredients in the production of candy and cream cakes, the group has launched a business rehabilitation programme with quality control support from cake and bread manufacturer Yamazaki Baking.

Morinaga and Fujiya said that they will maintain normal business relations.