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Harare - Zimbabwe has received five bids, including new offers from ArcelorMittal SA [JSE:ACL] and Jindal Steel and Power of India, for the takeover of steel maker Zisco, state media reported on Tuesday.
The government rejected bids from ArcelorMittal and Jindal earlier this year, saying the companies were "too big". Last month it invited new bids for the privatisation of Zisco.
Industry and Commerce Minister Welshman Ncube told the state-controlled Herald newspaper the two firms had submitted new bids and were part of five companies under consideration for the takeover of Zisco.
"We have received five bids and are in the process of making recommendations to the president, and so we cannot discuss much right now," Ncube is quoted as saying.
Ncube was not immediately available for comment.
A power-sharing government formed by rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai last year sought to attract foreign investors, in a bid to raise at least $10bn needed to fix the economy.
The government has identified cash-starved Zisco, once a major foreign currency earner with capacity to produce 1 million
tonnes of steel per year, as the first state-owned enterprise to be disposed of in a bid to revive its operations.
In May, Ncube announced that Mugabe had thrown out bids by ArcelorMittal and Jindal Steel which had been shortlisted for the Zisco stake, saying they were too big and that Zimbabwe preferred medium-sized investors for the company.
Zisco operations ground to a halt in 2008 at the height of Zimbabwe's economic meltdown and analysts say it would need a big investor to help offset its $300m debt.
Zimbabwe has struggled to attract significant investment, despite a unity government which has brought economic stability, because of wrangles within the coalition and an empowerment law which seeks to localise control of all foreign firms.
The government has, however, said Zisco's privatisation would not be affected by the controversial law which compels foreign investors to sell 51% shareholding to local blacks.
The government rejected bids from ArcelorMittal and Jindal earlier this year, saying the companies were "too big". Last month it invited new bids for the privatisation of Zisco.
Industry and Commerce Minister Welshman Ncube told the state-controlled Herald newspaper the two firms had submitted new bids and were part of five companies under consideration for the takeover of Zisco.
"We have received five bids and are in the process of making recommendations to the president, and so we cannot discuss much right now," Ncube is quoted as saying.
Ncube was not immediately available for comment.
A power-sharing government formed by rivals President Robert Mugabe and Prime Minister Morgan Tsvangirai last year sought to attract foreign investors, in a bid to raise at least $10bn needed to fix the economy.
The government has identified cash-starved Zisco, once a major foreign currency earner with capacity to produce 1 million
tonnes of steel per year, as the first state-owned enterprise to be disposed of in a bid to revive its operations.
In May, Ncube announced that Mugabe had thrown out bids by ArcelorMittal and Jindal Steel which had been shortlisted for the Zisco stake, saying they were too big and that Zimbabwe preferred medium-sized investors for the company.
Zisco operations ground to a halt in 2008 at the height of Zimbabwe's economic meltdown and analysts say it would need a big investor to help offset its $300m debt.
Zimbabwe has struggled to attract significant investment, despite a unity government which has brought economic stability, because of wrangles within the coalition and an empowerment law which seeks to localise control of all foreign firms.
The government has, however, said Zisco's privatisation would not be affected by the controversial law which compels foreign investors to sell 51% shareholding to local blacks.
