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Finland's Tokmanni, Kesko resolve noncompetition dispute

Finnish department store operator Tokmanni Group Oyj said Dec. 20 that it has reached an agreement with food retailer Kesko Oyj regarding their noncompetition dispute.

Under the agreement, Mika Rautiainen, who has been a vice president at Kesko since 2013, will become CEO of Tokmanni, effective June 1, 2018.

Kesko previously applied for an injunction to stop Rautiainen from taking any role at the department store operator, stating that a noncompetition clause in his executive contract prevents him doing so. The new announcement disregards the previous injunction.

Tokmanni Chairman Harri Sivula will remain interim CEO until Rautiainen takes up the post in 2018.