The Zimbabwean government completed its takeover today of the country's leading cooking oil manufacturer by acquiring US food giant H.J Heinz's 49% stake for $6.8m.
The deal marks the first time that the government has taken full control of a company from foreign investors and comes after President Robert Mugabe threatened to nationalise firms that flouted price controls.
The deal, which sees the government-controlled Cotton Company of Zimbabwe (Cottco) taking over Heinz's stake in Olivine Industries, was facilitated by the state's Industrial Development Corporation.
Mugabe warned on July 6 that manufacturers who cease production of basic commodities, such as cooking oil, as a result of government-imposed price controls would be nationalised.
His government is also planning to introduce legislation that would ensure black Zimbabweans hold the majority stake in all companies including the local arms of multinationals such as Barclays Bank and mining giant Rio Zim.
