Zimbabwe’s National Social Security Authority (NSSA) has acquired an 8.5% stake in Dairibord Holdings from the Equivest Asset Management consortium for more than $7 million, introducing a significant change to the shareholder structure surrounding the proposed acquisition of a controlling interest in the dairy processor by Varun Beverages Holding (Zimbabwe).

NSSA General Manager Charles Shava confirmed that the pension fund purchased the shares at a premium to the offer price agreed with Varun. “NSSA bought the 8.5% Equivest Asset Management consortium shares for just above $7 million,” Shava said.

The transaction comes as Zimbabwe’s Competition and Tariff Commission (CTC) reviews Varun’s proposed acquisition of a 48.79% stake in Dairibord, a deal that could reshape ownership of one of the country’s largest dairy and food manufacturers.

NSSA acquisition changes Dairibord’s takeover dynamics

The purchase removes Equivest’s 8.5% holding from the consortium’s shareholding position underpinning the proposed transaction, potentially requiring adjustments to the ownership arrangements surrounding the deal.

The acquisition price also exceeds Varun’s agreed offer price, adding another consideration to negotiations involving the parties. However, the implications for the proposed takeover and its final ownership structure remain subject to further corporate and regulatory developments.

The proposed transaction emerged in July after Equivest, Mega Market and Mutare Mart & Exchange notified Dairibord’s board that their combined shareholding had exceeded 51% and disclosed negotiations over a potential sale of a controlling interest. The shareholder group subsequently submitted a merger notification to the CTC in August, with Varun identified as the prospective acquirer by September.

Varun’s proposed acquisition remains under competition review

The CTC has opened an investigation into the proposed acquisition, examining whether the transaction could substantially lessen competition in Zimbabwe or create a monopoly situation contrary to the public interest.

The regulator invited interested stakeholders and members of the public to submit written representations by October 1, 2026. Its assessment covers the competitive positions of Varun, Dairibord and other market participants before and after the proposed transaction.

Varun, the Zimbabwean subsidiary of Indian beverage company Varun Beverages, entered the country in 2018 through a greenfield bottling facility in Harare. Its acquisition of Dairibord would extend its operations beyond carbonated and non-carbonated beverages into dairy, food and broader consumer products.

Dairibord sustains growth amid ownership uncertainty

Despite the uncertainty surrounding its ownership, Dairibord reported a 26% increase in revenue to $127.12 million for the nine months ended September 2026. Sales volumes rose 23% to 119.85 million litres, supported by stronger beverage demand and investments in production capacity.

Beverages led category growth at 28%, followed by Foods at 26% and Liquid Milks at 10%. Third-quarter revenue increased 22% to $44.65 million, while volumes advanced 18% to 41.58 million litres.

The proposed takeover also coincides with Dairibord’s plans to voluntarily delist from the Zimbabwe Stock Exchange and migrate to the US dollar-denominated Victoria Falls Stock Exchange, placing the company amid significant changes in ownership, regulation and capital-market positioning.