Zimbabwe investigates Varun Beverages’ proposed Dairibord stake acquisition
The proposed transaction would deepen Varun Beverages’ presence in Zimbabwe’s consumer goods sector, with stakeholders invited to submit views before the October 1 deadline.
ZIMBABWE – Zimbabwe’s Competition and Tariff Commission (CTC) has launched an investigation into Varun Beverages (Zimbabwe)’s proposed acquisition of a 48.79% shareholding in Dairibord Holdings Limited.
The commission said it is assessing whether the proposed transaction could substantially lessen competition or result in the creation of a monopoly situation.
In a public notice, the regulator invited interested stakeholders and members of the public to submit written representations on the potential impact of the proposed merger. Submissions must be received by October 1, 2026.
“The commission wants to determine whether the proposed merger is likely to substantially lessen the degree of competition in Zimbabwe or any substantial part of it; or is likely to result in the creation of a monopoly situation which is or will be contrary to public interest,” it said.
CTC is mandated to enforce competition policy by regulating mergers and addressing restrictive or anti-competitive practices, while also implementing Zimbabwe’s trade tariffs policy.
The investigation follows a cautionary statement from Dairibord notifying the market that key institutional shareholders had entered negotiations with a prospective buyer to dispose of a controlling equity stake.
Dairibord’s major shareholders include Mega Market (Private) Limited, with a 23.92% stake, Stanbic Nominees, with 23.87%, and Serrapin Investments, which holds 12.04%.
Varun Beverages (Zimbabwe) is the local franchise bottler for PepsiCo and is part of India-headquartered Varun Beverages Limited. The company manufactures carbonated soft drinks, energy drinks and packaged water and has expanded into snacks and beer.
Dairibord, which is listed on the Zimbabwe Stock Exchange, is Zimbabwe’s largest processor and distributor of dairy products, food and beverages.
Varun entered Zimbabwe in 2018 through a greenfield bottling facility in Harare and has since invested more than US$100 million in the country.
The proposed acquisition would expand Varun’s portfolio beyond carbonated soft drinks into dairy, juices and other fast-moving consumer goods.
Dairibord reported strong financial performance in the first half of 2026, with revenue rising 28% to US$82.56 million from US$64.32 million a year earlier. The company attributed the increase primarily to a recovery in volumes, supported by a more stable pricing and currency environment.
Consolidated sales volumes increased 26% to 78.3 million litres from 62 million litres, while raw milk utilisation remained broadly unchanged at 20.4 million litres.
Revenue from Dairibord’s South African operations increased 38% to US$0.72 million from US$0.52 million, as the group continued expanding its regional operations.
The CTC’s review will determine whether the proposed acquisition meets Zimbabwe’s competition and public-interest requirements.
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