THE Competition and Tariff Commission (CTC) is launching a formal investigation into the proposed acquisition of 100 percent shareholding in Lobels Holdings (Private) Limited by Mega Market (Private) Limited, in line with its statutory mandate to assess whether mergers and acquisitions could adversely affect competition and the public interest.
The investigation is part of the Commission’s routine merger assessment process under the Competition Act, through which it scrutinises corporate transactions to determine their impact on market competition before granting approval.
In a notice on Sunday, the Commission said the investigation is being conducted in terms of Section 28 of the Competition Act [Chapter 14:28].
“It is hereby notified, that the Competition and Tariff Commission, in terms of Section 28 of the Competition Act [Chapter 14:28], has commenced an investigation into the proposed acquisition of one hundred per centum (100%) shareholding in Lobels Holdings (Pvt) Ltd (“Lobels”) by Mega Market (Pvt) Ltd (“Mega Market”),” said the Commission.
Lobels is one of Zimbabwe’s established bakery businesses, manufacturing and distributing bread and confectionery products across the country.
Mega Market is a privately owned Zimbabwean company engaged in the manufacture and distribution of fast-moving consumer goods.
The company also wholly owns Mega Market Milling (Pvt) Ltd, which operates in the maize and wheat milling industry.
The proposed transaction brings together businesses operating in closely related segments of Zimbabwe’s food manufacturing and distribution value chain, making regulatory scrutiny critical to ensure that competition is not undermined.
According to the Commission, the investigation will focus on whether the proposed merger could substantially lessen competition in Zimbabwe or create a monopoly situation that would be contrary to the public interest.
“The Commission wants to determine whether the proposed merger is likely to substantially lessen the degree of competition in Zimbabwe or any substantial part of it; or is likely to result in the creation of a monopoly situation which is or will be contrary to public interest as provided in s32(4) of the Act.
“The investigation also seeks to ascertain how the merging parties, and other related players operate in the market before the merger as well as envisage how the merging parties will operate should the transaction be approved by the Commission and any other related issues.”
The CTC routinely undertakes such investigations whenever notifiable mergers are proposed, as part of its responsibility to safeguard fair competition, prevent excessive market concentration and protect consumer welfare.
The merger review process typically involves analysing the structure of the relevant markets, assessing the market shares of the merging entities, evaluating the potential impact on competitors, suppliers and consumers and determining whether the transaction raises competition or public interest concerns.
Where necessary, the Commission may approve a merger unconditionally, approve it subject to remedial conditions or prohibit the transaction if it is found to significantly reduce competition or harm the public interest.
As part of the current investigation, the Commission has invited stakeholders and members of the public to participate by submitting written representations outlining how the proposed transaction may affect them.
“In view of the foregoing, the Commission hereby gives notice to all interested stakeholders and the public to submit their written representations to the Commission stating how the proposed merger under investigation will affect them as well as addressing issues highlighted above, not later than Friday, 7 August 2026.”
The stakeholder consultation process is intended to assist the Commission in making an informed determination by gathering views from market participants, consumers, competitors and other interested parties before reaching a final decision on the proposed acquisition.-herald
