Watchdog probes Mega Market's bid for Lobels

The Competition and Tariff Commission (CTC) has launched a formal investigation into Mega Market's proposed acquisition of Lobels Holdings, a transaction that could significantly reshape competition in Zimbabwe's food manufacturing and fast-moving consumer goods (FMCG) sectors.

Mega Market is seeking to acquire 100 percent of Lobels Holdings in a deal that would combine one of Zimbabwe's largest bread and confectionery producers with an established FMCG manufacturer and milling business.

In a notice issued under Section 28 of the Competition Act [Chapter 14:28], the CTC said it is assessing whether the proposed merger would substantially lessen competition, create a dominant market position or otherwise 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 the public interest as provided for in Section 32(4) of the Act," the Commission said.

The regulator said its investigation will examine the current competitive relationship between the merging parties, the structure of the industry, the position of competing firms and the likely impact of the acquisition on the market if approved.

"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 said.

As part of its assessment, the Commission has invited consumers, competitors, suppliers and other interested stakeholders to submit written representations on the proposed transaction by August 7, 2026.

The submissions will form part of the Commission's evaluation of the merger's impact on competition, consumer welfare and broader public interest considerations.

Once the investigation is complete, the CTC may approve the acquisition without conditions, approve it subject to remedies aimed at preserving competition, or prohibit the transaction altogether.

Lobels Holdings is one of Zimbabwe's leading manufacturers and distributors of bread and confectionery products, with operations across the country. Mega Market manufactures and distributes a range of fast-moving consumer goods and is the wholly owned parent company of Mega Market Milling.

If approved, the transaction would rank among the most significant consolidation deals in Zimbabwe's food industry in recent years.