New Zimbabwe.com

Zim’s Delta Beverage looks to takeover Malawi brewer

ZIMBABWE’S largest brewer, Delta Beverages, is looking to takeover Malawi Traditional Beverages Limited for an undisclosed amount, authorities in Lilongwe have revealed.
The development was confirmed by Malawi’s Competition and Fair Trading Commission and regional trading block COMESA, both of which must approve the transaction.
A unit of global beverages company SABMiller, Delta is listed on the Zimbabwe Stock Exchange (ZES) where it is one of the biggest corporations by market capitalisation.
The Malawi commission told local media that the intended acquisition was still in the “preliminary stages of assessment”.
“Currently, we are working with our counterparts at the Competition and Fair Trading Commission in Malawi (CFTC), the Competition and Tariff Commission of Zimbabwe and the Competition and Consumer Protection Commission of Zambia to determine the likely effects of the transaction in the market,” said Willard Mwembe, the head of Mergers and Acquisitions at the COMESA.
Malawi’s competition commission official Lewis Kulisewa added; “The merger application will be processed at the COMESA Competition Commission as it involves several Comesa member states.”
On the likes jobs impact of the takeover, Mwemba said, “The commission has not yet finalised the assessment but the public shall be informed of our assessment once the transaction is considered by our board.”
Another official however insisted that the deal would not be blocked on the basis possible job losses, adding that Malawi’s competition law was meant to promote rather than repel investment.Advertisement