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Heinz Backs Out of Zimbabwe

Zimbabwe’s dysfunctional economy is hitting American companies. 

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 $6.8m.

Rampant annual inflation of more than 7,600% has crippled the economy and firms failing to reduce prices face the threat of possible nationalization.

Heinz has been present in Zimbabwe for more than 25 years.

Posted by Owen at 1718 hrs
Foreign Affairs

1. Heinz could be telling the truth, that this is simply a business decision which allows them to focus more on their more profitable base products. However, I find it more likely that this move was forced upon the company by President Robert Mugabe and his goons.
   Zimbabwe has been going to H#*L in a handbag since the short-sighted, illinformed land seizures of 2000.
   http://sluggabohn.wordpress.com

   Posted by sluggabohn on September 05, 2007 at 1232 hrs
   
   
   

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