Delta, Varun Battle for Control of Dairibord in US$35 Million Takeover Race

By Southerton Business Times | Harare

A high-stakes corporate battle has emerged for control of Dairibord Holdings Limited (DHL), with beverage giants Delta Corporation and Varun Beverages Zimbabwe reportedly locked in a multi-million-dollar contest to acquire a controlling stake in Zimbabwe's largest listed dairy processor.

Industry sources familiar with the negotiations said the race has intensified after Delta entered the bidding process with what insiders describe as a higher financial offer, challenging Varun Beverages, PepsiCo's regional bottling partner, which has been pursuing the transaction for several months. The proposed acquisition, estimated to be worth between US$30 million and US$35 million, is understood to be at an advanced stage and could be concluded before the end of September 2026, subject to shareholder approval and regulatory clearance.

Dairibord Confirms Shareholder Negotiations

Last week, Dairibord issued a cautionary statement confirming that its three largest shareholders had informed the company they were negotiating with an unnamed third party regarding the possible disposal of their controlling interest. The company said the proposed transaction could have a material impact on its share price and advised investors to continue exercising caution when trading its shares.

According to sources, the negotiations involve the approximately 51% controlling stake collectively held by Equivest Asset Management, Mega Market and Mutare Mart & Exchange.

"The discussions are centred on the acquisition of a controlling stake, not the whole company," one source told Southerton Business Times.

"Varun approached the major shareholders with an offer at a premium to the prevailing market price and has continued accumulating shares through the Zimbabwe Stock Exchange."

Delta Challenges Varun's Early Advantage

Although Delta is understood to have tabled a more attractive financial offer, insiders say Varun remains in a strong position after entering negotiations earlier and steadily increasing its shareholding through market purchases.

"Price is important, but transaction certainty is equally important," a source said.

"Varun's position is strengthened by the apparent certainty of its cash offer and its continued acquisition of shares in the market."

Market participants say Varun's sustained buying activity has contributed to Dairibord's recent share price rally, with the counter repeatedly triggering the Zimbabwe Stock Exchange's circuit breaker limits.

Competition Regulator Issues Reminder

The developments come as the Competition and Tariff Commission (CTC) reminded investors that acquisitions executed through the Zimbabwe Stock Exchange (ZSE) or Victoria Falls Stock Exchange (VFEX) remain subject to Zimbabwe's merger control laws where they result in a change of control. The commission said any acquisition conferring control, where the combined annual turnover or asset value of the merging parties equals or exceeds US$1.2 million, must receive regulatory approval before implementation. Failure to notify the commission could result in transactions being unwound and administrative penalties of up to 10% of the parties' annual turnover.

Strategic Importance of Dairibord

Analysts say the battle highlights Dairibord's strategic value within Zimbabwe's fast-evolving food and beverages sector. With established brands, nationwide manufacturing facilities and an extensive distribution network, Dairibord offers an attractive platform for expansion. A successful acquisition by Varun would significantly strengthen its footprint in Zimbabwe's beverages market and intensify competition with Delta and Rutanhi Beverages, the Innscor-controlled soft drinks producer.

Conversely, a Delta acquisition would consolidate one of Zimbabwe's largest beverage companies by integrating dairy products into its already dominant portfolio of alcoholic and non-alcoholic beverages.

Company Declines to Comment

Dairibord board chairperson Nobert Chiromo said the proposed transaction remains a matter for shareholders.

"As confirmed by the cautionary statement issued by DHL, this is a transaction taking place at shareholder level and the company is not involved at this stage," Chiromo said.

"Should the negotiations be successfully concluded, the company will be informed and the board will then ensure that the process complies with the ZSE Listing Rules and the Companies and Other Business Entities Act, especially as regards the protection of minority shareholders' interests."

Delta also declined to comment. General Manager for Corporate Affairs Patricia Murambinda said the company could neither confirm nor deny its interest while the cautionary statement remains in force. Efforts to obtain comment from Varun Beverages Zimbabwe, Equivest Asset Management, Mega Market, Mutare Mart & Exchange, and the Competition and Tariff Commission were unsuccessful by the time of publication.

Sources cautioned that despite advanced negotiations, no agreement has been finalised and the transaction remains subject to definitive agreements and regulatory approvals. If completed, the acquisition is expected to become one of Zimbabwe's most significant corporate transactions of 2026 and could reshape competition across the country's dairy and soft drinks industries.

Dairibord takeover