A businessman born in Grange Moor is caught up in a cold war between his frozen food chain Iceland – and a certain country of the same name.

The Icelandic government has confirmed that it is considering launching a lawsuit against the supermarket in connection with the firm’s use of the Iceland name – 45 years after Malcolm Walker founded the business.

A spokesman for the country’s ministry of foreign affairs said: “I can confirm that this is being looked into, but no decision has been made.”

Promote Iceland, an agency linked to the Icelandic foreign ministry, said it has no intention of forcing Iceland Foods to give up its brand, but wants to ensure that the supermarket does not prevent Icelandic firms from registering the name “Iceland” across the UK or the European Union.

“We are looking for a ‘live and let live’ outcome,” Jon Asbergsson, the managing director of Promote Iceland, said.

A spokesman for the retailer said: “Iceland Foods has traded under the Iceland name in the UK since 1970 and is today one of the UK’s most recognised brands.

“We have also traded as Iceland for many years in other EU countries and in non-EU countries, including Iceland itself.

“We are not aware that our use of the Iceland name has ever caused any confusion with Iceland the country.”

Relationships between the supermarket and the Nordic nation have a history of frostiness.

Icelandic retail conglomerate Baugur held a controlling stake in the grocery business until Iceland collapsed in 2009. The stake then fell into the hands of Icelandic banks Landsbanki and Glitnir before being acquired as part of a management buy-out led by Mr Walker, who is now its chief executive.

The company, based in Deeside, has more than 800 stores across the UK, including ones at Trinity Street and Aspley in Huddersfield. It employs more than 23,000 staff.

Mr Walker, who last year received an honorary degree from the University of Huddersfield, began his business as a sideline in 1970 with capital of just £30 while working as a trainee manager at Woolworths. His venture selling strawberries from a roadside stall got him the sack, but set him on the path to building one of the biggest names on the high street.

On its website, Promote Iceland is described as a public-private partnership established to improve the competitiveness of Icelandic companies in foreign markets and to stimulate economic growth through increased export.