Kagome postpones Heinz Japan stake deal
it was postponing the acquisition of a controlling stake in the
Japanese unit of U.S. food firm H.J. Heinz Co.
Japan's largest maker of ketchup, Kagome Co Ltd, said on Thursday it was postponing the acquisition of a controlling stake in the Japanese unit of U.S. food firm H.J. Heinz Co.
The two companies agreed in December to a deal that would allow Kagome to buy a 51 per cent stake in Heinz Japan and create a joint venture between the two firms.
"We cannot speak about the contents of the negotiations, but it will just take some time to clear things up," a Kagome spokesman said. "There is very little chance the agreement will be called off."
An official at Kagome said the two sides had run into difficulties during negotiations, but declined to elaborate.
Under the deal, Kagome was going to issue 4.15 million new shares at 1,095 yen a share to Heinz Co.
Kagome also intended to issue another 1.7 million shares to Japanese packaging materials maker Dainippon Shigyo Co Ltd, so it could remain its largest shareholder.
Both new share issues were postponed.
The deal, due to be completed on January 31, was part of a global cooperative agreement between the two companies.
