Online Reporter
Business Reporter
The Competition and Tariff Commission has launched an investigation into the proposed acquisition of a 48,79 percent shareholding in Dairibord Holdings Limited by Varun Beverages (Zimbabwe).
In a public notice issued yesterday, the commission said it is investigating whether the proposed transaction would substantially lessen competition or create a monopoly situation. Consequently, the regulator has invited interested stakeholders and members of the public to submit written representations on how the merger might affect them ahead of the October 1, 2026 deadline.
“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 a statutory body with the dual mandate to enforce competition policy by regulating mergers and preventing restrictive, anti-competitive practices, as well as executing Zimbabwe’s trade tariffs policy to foster fair trade across all economic sectors.
Dairibord recently issued a cautionary statement notifying the market that key institutional shareholders have entered negotiations with a prospective buyer to dispose of a controlling equity stake.
The company’s primary equity holders include Mega Market (Private) Limited with a 23,92 percent shareholding, Stanbic Nominees with 23,87 percent and Serrapin Investments with 12,04 percent.
Market sources earlier indicated that Varun had quietly been buying up smaller tranches of shares from open-market holders, as it reportedly targeted a controlling 51 percent interest in the dairy processor.
Varun Beverages, the Zimbabwean unit of Indian-headquartered multinational Varun Beverages Limited, is the local franchise bottler for PepsiCo. The company produces carbonated soft drinks, energy drinks, packaged water, and recently expanded into the snacks and beer business. Dairibord, listed on the Zimbabwe Stock Exchange (ZSE), is the country’s largest processor and distributor of dairy products, food, and beverages.
Since entering Zimbabwe in 2018 with a greenfield bottling facility in Harare, Varun has invested over US$100 million in the country. The acquisition of a 48,79 percent stake in Dairibord would mark a significant step in Varun’s strategy to diversify beyond carbonated soft drinks into dairy, juices, and broader fast-moving consumer goods.
Varun is an Indian-headquartered multinational and one of the largest franchise bottlers of PepsiCo products in the world outside of the United States. The company manufactures, bottles and distributes a massive portfolio of beverages, including Pepsi, Mirinda, Mountain Dew, 7Up and Aquafina.
Varun officially entered the Zimbabwean market in 2018 with the launch of a state-of-the-art greenfield bottling plant in Harare.
Since its entry, the company has hugely disrupted the local beverage landscape through an aggressive low-cost pricing model, rapid capacity expansions and an extensive, highly visible retail distribution network. Beyond beverages, Varun has begun expanding into the food and snacks sector — having secured a licence to manufacture and distribute PepsiCo snack brands, such as Simba Munchiez.
