The leading American food manufacturer, H.J. Heinz Company, says its sale to the Zimbabwe government of a local subsidiary is in the best interests of both Heinz and its Zimbabwean employees.

Heinz spokesman Michael Mullen told allAfrica in an e-mailed comment from the company's headquarters in Pittsburgh yesterday that the company had been "reviewing strategic options for this business for the past 15 months..."

In an earlier statement, Mullen said that on June 1, 2006, "Heinz took a charge to write-down its investment in Zimbabwe as a result of the continuing uncertainty regarding the stability of the currency and economic conditions in the country."

The statement confirmed that the company had sold its 51 percent stake in Olivine Industries to the Zimbabwe government, which had already owned 49 percent of the company. Olivine employs 1,200 people in factories making cooking oil, margarine and soap in Harare and Chegutu.

Heinz did not disclose the terms of the sale and declined to answer questions on what it thought of the Zimbabwe government's recent orders imposing drastic price cuts on business and industry.

Mullen's statement said only that "Olivine is a wonderful business and Heinz has enjoyed its relationship in Zimbabwe since 1982. The decision to sell the business was only taken after a comprehensive review of all strategic options.”