Sunday 20 October 2024

CSC SUES BRITISH FIRM AS DEAL COLLAPSES

The deal between Cold Storage Company (CSC) and UK firm, Boustead Beef has collapsed.

Agriculture Minister, Dr Anxious Masuka confirmed that the deal crumbled due to Boustead’s inability to meet the terms of the agreement, resulting in CSC terminating the transaction.

The Chronicle reports that in June, Mutapa Investment Fund (MIF) chief executive officer, Dr John Mangudya, noted that crucial facets of the deal had not been met. Consequently, CSC took legal action against Boustead Beef after it failed to meet the requirements of the deal.

Although the partnership was meant to last 25 years and promised to rebuild the company with a US$135 million investment, crucial conditions were not met, providing grounds for CSC’s legal action against Boustead.

“We have sought to disengage from that process, and that process is now a legal process. So that’s why I say that this is a subject of some discussion elsewhere,” said Dr Masuka.

The partnership led to a rebranding of CSC as Boustead Beef — Cold Storage Company of Zimbabwe, reigniting hope for thousands of families who relied on the once-thriving company.

CSC was being run in a joint venture between the Government and Boustead Beef (Pvt) Ltd in 2019 under the Rehabilitate, Operate and Transfer (ROT) Agreement.

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