Online Reporter
Sikhulekelani Moyo [email protected]
THE Competition and Tariff Commission (CTC) has approved Mega Market’s proposed acquisition of a 100 percent shareholding in Lobels Holdings, a transaction expected to strengthen local manufacturing capacity and improve supply chain efficiencies in Zimbabwe’s bread and flour value chain.
In its third-quarter 2026 merger decisions update, the commission said the transaction, which was fully notified on July 10, 2026, is a vertical merger involving the supply of standard loaf bread and the manufacture and distribution of flour in Zimbabwe.
Mega Market is a privately owned Zimbabwean company incorporated in 2000.
The company manufactures and distributes branded fast-moving consumer goods (FMCGs), including rice, pasta, tinned fish and salt.
Through its subsidiary, Mega Market Milling, established in 2023, the company also produces bread flour, cake flour, self-raising flour, biscuit flour and maize meal.
Lobels Holdings is the holding company of Lobels Bread, Lobels Bulawayo and Polton Investments.
Lobels Bread and Lobels Bulawayo manufacture and distribute a range of bread and confectionery products, including prime white loaf, high-fibre loaf, wholemeal loaf, whole wheat loaf, tea loaf and bread rolls.
Lobels Holdings is already a customer of Mega Market, with between 20 and 25 percent of its flour requirements sourced from the acquiring company.
The rationale for the transaction is to support investment in local manufacturing, improve supply chain and operational efficiencies, strengthen business sustainability and enhance coordination across production and logistics functions.
In approving the transaction, the commission imposed four key conditions for an initial period of two years, including a requirement to maintain diversity in flour sourcing.
“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. 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.
“Job protection: For 24 months from approval, Lobels Holdings and its subsidiaries shall not terminate any employment contract as a result of the merger, except for positions at Senior
Management Level. This excludes voluntary retrenchment, voluntary separation, early retirement, refusals to be redeployed, and dismissals for misconduct or poor performance,” said the commission.
On compliance monitoring, the CTC said the merging parties would be required to submit annual reports demonstrating adherence to the flour sourcing, non-discrimination and employment protection conditions.
The acquisition brings together a major FMCG producer and distributor, a flour miller and one of Zimbabwe’s largest bread manufacturers.
Analysts say the vertical integration could enhance supply reliability and lower operating costs, while the commission’s conditions are designed to prevent anti-competitive behaviour and protect rival bakeries’ access to flour supplies.
Lobels products remain among the most widely consumed bread brands in Zimbabwe, while Mega Market Milling has significantly expanded its wheat and maize milling operations since 2023.
The approval comes as Government and industry continue to push for increased value addition and food security under National Development Strategy 2, with bread and flour identified as strategic staple food value chains.
The commission said it will review the flour sourcing condition after the initial two-year period.
Meanwhile, the CTC has also approved the proposed acquisition of a 100 percent shareholding in Crowvest Limited, trading as The Stables Winery, by Baraza Ventures (Pvt) Limited in a transaction that consolidates wine importation and retail liquor distribution operations.
In its third-quarter 2026 merger decision, the commission said the transaction, fully notified on June 23, 2026, has both vertical and horizontal dimensions involving the importation and wholesale distribution of wines, as well as the retail sale of alcoholic beverages in Zimbabwe.
Baraza Ventures is a Zimbabwean investment company. Prior to the acquisition, its only operational interest was Village Liquors (Pvt) Ltd, which distributes alcoholic beverages through retail outlets operating under the Liquor Supplies and Star Liquors brands.
Crowvest Limited, trading as The Stables Winery, specialises in the sale of imported wines to both corporate and retail customers.
Following completion of the deal, the new owners said they intend to build on the winery’s existing strengths by expanding market reach, improving operational efficiency and broadening the range of products and services on offer.
The investors said the objective is to drive sustainable growth while maintaining high standards of quality, customer service and community engagement.
