HARARE -THE Competition and Tariff Commission (CTC) has approved the proposed acquisition of a controlling stake in dairy producer Dendairy by Vamara Group Limited and 3DZ Capital Limited, a transaction that links dairy processing with upstream agricultural inputs in the country’s dairy value chain.

In its fourth-quarter 2025 newsletter, CTC reported that the deal involved acquiring 100% of the shareholding in Dendairy (Pvt) Ltd, a Zimbabwean dairy company that produces UHT milk, ice cream, and dairy-blended juices, operates two dairy farms in Kwekwe, and also sources milk from contract farmers.

Vamara Group Limited, incorporated in Mauritius and wholly owned by the Export Trading Group (ETG), has no direct operations in Zimbabwe but its parent group maintains a diversified presence across sectors including agricultural inputs, chemicals, logistics, food processing, energy and supply chain optimisation.

Regulators said the transaction was assessed as a vertical merger, noting that ETG subsidiary Edurate Investments manufactures stockfeed, a key input in dairy farming that directly affects raw milk production and the wider dairy products value chain.

A vertical merger is when a company buys or merges with another company that supplies its inputs or distributes its products within the same production chain.

Following its assessment of potential competition risks, the commission cleared the transaction subject to conditions aimed at preventing discriminatory trading practices between the merging parties and their suppliers or customers.

“Vamara Group Limited, its subsidiaries, affiliates, and successors-in-title, and Dendairy (Private) Limited, its subsidiaries, affiliates, and successors-in-title, shall trade with their suppliers and customers on non-discriminatory terms and conditions,” CTC stated.

The regulator said the transaction was analysed under theories of harm typically associated with vertical mergers, including the possibility of input or customer foreclosure, but concluded that the immediate impact on competition was unlikely to be significant.

However, authorities noted that because stockfeed accounts for a large share of milk production costs, the relationship between stockfeed supply and dairy production could create incentives for preferential treatment in pricing, credit terms or payment arrangements within the value chain.