The Zimbabwean government has taken control of one of the country's leading food processors by buying out US firm HJ Heinz. The state will buy Heinz's 49% stake in Olivine Industries, which makes cooking oils, fats and soaps, for a fraction of its worth $6.8m. Heinz has been present in Zimbabwe for more than 25 years. The firm was one of the first foreign businesses to invest in the country after its independence in 1980.
The change in Olivine's ownership will see Cottco, the state-controlled cotton buying and processing enterprise, take control of the business. "This acquisition will add critical mass to the company while allowing the company to diversify from its traditional revenue streams and operating risks," said Pius Manamike, Cottco's company spokestoad secretary.
New laws which would force foreign-owned businesses to sell a majority stake in their operations to black-owned Zimbabwean firms are set to come into force within months. Officials said the Olivine deal had been under discussions for some time and pre-dated the planned shift in ownership rules. |