Online Reporter
Sikhulekelani Moyo
Zimpapers Business Hub
THE Competition and Tariff Commission (CTC) has approved Mega Market’s proposed acquisition of a 100 percent shareholding in Lobels Holdings.
The deal is expected to strengthen local manufacturing capacity and supply chain efficiencies in the bread and flour sector.
In its 2026 third-quarter merger decisions update, the commission said the transaction, fully notified on 10 July 2026, is a vertical merger covering the supply of standard loaf bread and the manufacturing and distribution of flour in Zimbabwe.
Mega Market is a privately owned Zimbabwean company incorporated in 2000.
It manufactures and distributes branded packaged fast-moving consumer goods (FMCGs) including rice, pasta, tinned fish and salt.
Through its subsidiary Mega Market Milling, incorporated in 2023, the company produces bread flour, cake flour, self-raising flour, biscuit flour and maize meal.
Lobels Holdings wholly owns Lobels Bread, Lobels Bulawayo and Polton Investments.
Lobels Bread and Lobels Bulawayo manufacture and distribute bread and confectionery, including prime white loaf, high fibre loaf, whole meal loaf, whole wheat loaf, tea loaf and rolls.
Lobels Holdings is already a customer of Mega Market, with 20-25 percent of its flour requirements currently supplied by the acquirer.
The rationale cited for the merger is to support investment into local manufacturing capacity, improve operational and supply chain efficiencies, strengthen business sustainability and enhance coordination across logistics and production activities.
In approving the deal, the commission imposed four key conditions for an initial period of two years, including flour sourcing diversity, stressing that Lobels Holdings and its subsidiaries shall not source their entire bread flour requirements from Mega Market.
“It must procure at least 50 percent of bread flour from other local wheat millers, subject to reasonable commercial terms. The aim is to preserve a vibrant market for flour,” said the commission.
“Non-discriminatory supply: Mega Market Milling must continue to make flour available to third-party bakery customers on non-discriminatory, arm’s-length commercial terms. The merged entity cannot discriminate against other bakeries on pricing, discounts, rebates, flour quality, product allocations, delivery schedules, credit terms or product availability.
