Zimbabwe’s competition regulator has opened a formal investigation into Varun Beverages Holding’s proposed acquisition of a 48.79% stake in Dairibord Holdings, putting the transaction under scrutiny over its potential impact on competition and the public interest.
In a notice issued under Section 28 of the Competition Act, the Competition and Tariff Commission (CTC) said it would determine whether the proposed acquisition could “substantially lessen the degree of competition in Zimbabwe or any substantial part of it” or result in a monopoly situation contrary to the public interest.
The regulator will also examine how the merging parties and other related players currently operate in the market, as well as how the businesses would operate if the transaction is approved.
The proposed deal involves Varun Beverages Holding acquiring a 48.79% shareholding in Dairibord, a listed food and beverage manufacturer with major interests in dairy products, beverages and food products.
The transaction follows negotiations involving three major Dairibord shareholders — Mega Market, Equivest Asset Management and Mutare Mart & Exchange — whose combined holdings amount to more than 51% of the company’s issued ordinary shares.
The CTC investigation now introduces a regulatory hurdle before the proposed change in control can proceed.
The Commission has invited interested stakeholders and members of the public to submit written representations on how they could be affected by the proposed merger, as well as on the competition issues raised by the transaction.
Submissions have been given an October 1, 2026 deadline.
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The proposed takeover comes as Varun has been rapidly expanding its footprint in Zimbabwe’s consumer goods and beverage industries.
Varun entered Zimbabwe in 2018 with its beverage operations and has since built a substantial production and distribution network. The company is also preparing to begin distributing Carlsberg beer in Zimbabwe this month, ahead of plans for local production next year, adding another major consumer category to its portfolio.
Against that background, acquiring a significant stake in Dairibord would give Varun exposure to one of Zimbabwe’s biggest dairy and food-processing businesses while strengthening its position across the wider consumer goods market.
Dairibord is also an important domestic manufacturer whose operations extend across milk, dairy products, beverages and food products, making the competition implications broader than a simple change in share ownership.
The CTC’s decision to investigate therefore places the focus on whether the combination of the businesses could alter market dynamics, reduce consumer choice or give the enlarged group excessive market power.
The regulator said its investigation would also examine “any other related issues” surrounding the proposed transaction.
The three Dairibord shareholders had previously notified the company that they were negotiating the disposal of their combined controlling block to a third party, although the prospective buyer was initially not publicly identified.
The transaction has since been widely linked to Varun, which has emerged as the leading prospective buyer.
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