Online Reporter
Sikhulekelani Moyo
Zimpapers Business Hub
THE Competition and Tariff Commission has approved Mega Market’s proposed acquisition of a 100 percent shareholding in Lobels Holdings, a deal 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 July 10, 2026, is a vertical merger covering the supply of standard loaf of 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.
It stressed 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.
“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.”
On annual compliance reporting, CTC said the merging parties must submit an annual compliance report to the commission demonstrating adherence to the flour sourcing, non-discrimination and employment conditions. The acquisition brings together a major FMCG distributor, miller and one of Zimbabwe’s largest bread manufacturers.
Analysts say the vertical integration could improve supply reliability and reduce costs, but the commission’s conditions seek to prevent the merged entity from squeezing competing bakeries out of the flour market.
Lobels’ products are among the most widely consumed bread brands nationally, while Mega Market Milling’s capacity in wheat and maize milling has grown rapidly since 2023.
The approval comes as the Government and industry are pushing for greater value addition and food security under National Development Strategy 2, with bread and flour identified as key staple value chains.
The commission said it will review the flour sourcing condition after the initial two-year period.
Meanwhile, 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 deal that brings together wine importation and retail liquor distribution.
In its 2026 third-quarter merger decision, the Commission said the transaction, fully notified on 23 June 2026, has both vertical and horizontal dimensions covering the importation and wholesale distribution of wines, and the retailing of alcoholic beverages in Zimbabwe.
Baraza Ventures is a Zimbabwean investment company. Before the merger, its sole operational interest was Village Liquors (Pvt) Ltd, which distributes alcoholic beverages through a network of retail outlets trading under the Liquor Supplies and Star Liquors brands.
Target company Crowvest Limited trades as The Stables Winery and is engaged in the sale of imported wines to corporate clients and retail customers.
Following the transaction, the new owners said they intend to build on the existing strengths of the business by expanding market reach, improving operational efficiency, and broadening the range of products and services offered.
The goal, they said, is to promote sustainable growth while maintaining standards of quality, customer service and community engagement.
