adminTinashe Makichi, Harare Bureau
Zimbabwe Pharmaceutical (Zimpharm) is in the process of completing the 100 percent takeover of Datlabs Limited, another pharmaceutical and personal care products manufacturer.
Zimpharm, one of the biggest pharmaceutical companies in the country was previously owned by MedTech but has since been taken over by a group of local pharmacists.
A source close to the transaction told our sister paper The Herald Business that Zimpharm will be taking over the whole of Datlabs Zimbabwe operations as part of plans to expand its operations and product potfolio.
“Zimpharm has expressed interest in wholly taking over Datlabs which is a company focused on products which do not fall within the Zimpharm portfolio.
“This transaction show that the company has massive ambitions going into the future despite the economic headwinds affecting the country,” said the source.
The source added that the proposed transaction is now awaiting regulatory approval and a notification has since been submitted at the Competition and Tariff Commission.
A CTC official who requested anonymity confirmed that a notification for the proposed transaction has been filed at the competition authority.
Efforts to get a comment from both Zimpharm and Datlabs were fruitless. Datlabs has been on a growth trajectory which saw its camphor cream product contributing about 60 percent of its revenue on the back of increased demand.
The proposed Zimpharm transaction comes at a time when Government is vocal about the need to create an enabling environment for investment.
Bongani Ndlovu