Varun Beverages (Zimbabwe), the local unit of Indian beverage giant Varun Beverages, is facing a regulatory hurdle in its proposed acquisition of a 48.79% stake in Dairibord Holdings, as Zimbabwe’s competition regulator assesses the potential impact of the transaction on the country’s consumer goods market.

The Competition and Tariff Commission (CTC) has opened an investigation into the proposed acquisition and invited interested stakeholders and members of the public to submit written representations by October 1, 2026.

Varun’s Dairibord deal enters competition review

The CTC said its investigation will determine whether the proposed transaction could substantially lessen competition in Zimbabwe or result in a monopoly situation contrary to the public interest.

The review will consider how Varun, Dairibord and other relevant market participants operate before the transaction, as well as how the competitive landscape could change if the acquisition is approved.

The proposed transaction involves the acquisition of 48.79% of Dairibord by Varun Beverages Holding (Zimbabwe) Private Limited. Dairibord confirmed that the merger notification remains under consideration by the CTC.

Three shareholders drive proposed ownership change

The transaction follows negotiations involving three major Dairibord shareholders, Equivest Asset Management, Mega Market and Mutare Mart & Exchange, which together hold more than 51% of the company’s issued ordinary shares.

The proposed sale could eventually result in a change in control of Dairibord, although the precise ownership structure will depend on the outcome of the regulatory process and subsequent transactions.

Varun Beverages expands beyond beverages

Varun Beverages entered Zimbabwe in 2018 with a greenfield bottling facility in Harare and has since expanded its manufacturing and distribution footprint in the country. Zimbabwean media reports that the company has invested more than $100 million in the market since its entry.

The acquisition would broaden Varun’s exposure beyond carbonated and non-carbonated beverages into Dairibord’s dairy, food and beverage operations.

Dairibord is one of Zimbabwe’s major manufacturers and marketers of milk, food and beverage products and is listed on the Zimbabwe Stock Exchange. Its latest half-year results showed consolidated sales volumes rising 26% year-on-year to 78.3 million litres in the six months ended June 30, 2026.

Dairibord prepares for market migration

The potential ownership change comes as Dairibord separately progresses with plans to voluntarily delist from the Zimbabwe Stock Exchange and migrate to the US dollar-denominated Victoria Falls Stock Exchange.

The combination of the proposed stake sale, the CTC’s competition review and Dairibord’s planned exchange migration places the company at the centre of Zimbabwe’s consumer-goods investment landscape, with investors awaiting further regulatory and corporate disclosures on the transaction.