CTC approves Mega Market’s takeover of Lobels under strict competition conditions
The commission approved the vertical merger subject to conditions aimed at preserving competition in the flour market, protecting rival bakeries and limiting merger-related job losses.
ZIMBABWE – The Competition and Tariff Commission (CTC) has officially approved fast-moving consumer goods giant Mega Market’s proposed acquisition of Lobels Holdings, clearing a major transaction that brings together a flour miller and one of Zimbabwe’s established bread and confectionery manufacturers.
The merger unites one of the country’s premier bread and confectionery producers with an expanding agricultural milling enterprise, creating a heavily integrated player across Zimbabwe’s food manufacturing value chain.
To address anti-competitive risks associated with vertical integration, the regulatory body instituted targeted remedies governing procurement and supply terms.
Under the binding approval framework, Lobels is required to purchase at least half of its total bread flour requirements from alternative local millers during the first two years post-merger, preventing the bakery from sourcing exclusively from Mega Market’s milling operations.
The requirement is intended to prevent the merged company from directing Lobels’ entire flour demand to Mega Market and thereby restricting opportunities for competing local millers.
Concurrently, Mega Market must continue supplying external rival bakeries on non-discriminatory commercial terms, ensuring competing bakers receive equitable pricing, volume discounts, flour grades, and delivery schedules without preferential treatment for Lobels.
In addition to market competition safeguards, the watchdog prioritized labor protection within the domestic food sector.
The transaction, formally notified to the CTC on 10 July 2026, links Mega Market’s milling operations with Lobels’ bread manufacturing and distribution businesses.
Mega Market, established in 2000, produces and distributes fast-moving consumer goods including rice, pasta, tinned fish and salt.
Through its Mega Market Milling subsidiary, established in 2023, the company manufactures bread flour, cake flour, self-raising flour, biscuit flour and maize meal.
Lobels Holdings owns Lobels Bread, Lobels Bulawayo and Polton Investments, with its bakery operations producing products including white, high-fibre, wholemeal and whole-wheat loaves, tea loaves and bread rolls.
Before the acquisition, Lobels already sourced between 20% and 25% of its flour requirements from Mega Market, making the proposed transaction a significant step towards greater vertical integration between milling and baking.
The acquisition comes as Mega Market aggressively expands its domestic milling and grain-processing footprint.
The group’s newly established wheat mill in Mutare currently operates with a processing capacity of 300 tonnes per day, running alongside an existing 100-tonne-per-day maize milling plant.
Looking ahead, Mega Market plans to further expand its regional processing infrastructure by constructing a second, larger wheat mill capable of processing 450 tonnes daily, as well as a 200-tonne-per-day maize mill to support expanded consumer food production.
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