Dairibord-Den Dairy merger talks still on
DAIRIBORD Zimbabwe, the country's largest dairy processor, discussions with unlisted fellow industry player Dendairy over potential acquisition and merger of the two's operations.
Market analysts say Dendairy is now a significant competitor in the Zimbabwe dairy space, after identifying opportunity from gaps, and has grown its market share and investment over the years.
“If successfully concluded, this transaction will have material impact on the company's shares, the full impact of which is still being determined,” Dairibord said in a statement on Friday.
Dairibord, Zimbabwe Stock Exchange listed entity, is the country's largest dairy company, producing and marketing a range of fresh milk and ready-to-drink and long-life milk products.
It owns Lyons; which manufactures and markets ice-cream, cordials, condiments and spreads, tea and mineral water; ME Charhons which makes biscuits and baking products; and controls Dairibord Malawi.
The company is wholly-owned by Lavenson Investments Private Limited and is the flagship subsidiary of Dairiboard Holdings Limited. DZL Holdings Limited owns four property companies.
These are Goldblum Investments, Chatmoss Properties, Quallinnex Properties and Slimline Investments. Its export markets include Zambia, Botswana, Malawi, Mozambique and South Africa.
Dairibord accounts for 38 percent of the national milk intake, and the merger with Dendairy would extend its domestic market tentacles tipping the scales against rivalry Prodairy, the second largest player.
Dairibord is reportedly targeting Dendairy's milk processing capacity amid revelations Dendairy would focus mostly on the production, growing its heifer investment and growing a new farming venture in the Lowveld.