Sweets maker Mieszko has pulled out of a merger deal with sector peer Jutrzenka after turning down the company’s proposals and withdrawing from an initial agreement made on 30 July.

Earlier this year, Mieszko revealed plans to boost its sales revenues by 30-35% and its net profit by 45-55% during 2001. It said it would achieve this by expanding exports, developing its distribution network, launching new products and intensifying marketing efforts.

Market watchers expect that the end of the merger deal will mean Israeli coffee and food group Elite is more likely to buy out a controlling stake in Mieszko. This move was unofficially reported in the daily newspaper Rzeczpospolita but so far an Elite spokesperson has refused to comment.