The Competition and Tariff Commission (CTC) has approved Mega Market’s proposed acquisition of a 100% shareholding in Lobels Holdings, though the deal comes with several conditions designed to safeguard competition in the bread and flour market.
In its 2026 third-quarter merger decisions update, the commission described the transaction, fully notified on 10 July 2026, as a vertical merger covering the supply of standard loaf bread and the manufacturing and distribution of flour in Zimbabwe.
Mega Market is a privately owned Zimbabwean company incorporated in 2000, manufacturing and distributing branded packaged fast-moving consumer goods (FMCGs), including rice, pasta, tinned fish and salt.
Through its subsidiary Mega Market Milling, incorporated in 2023, the company also produces bread flour, cake flour, self-raising flour, biscuit flour and maize meal.
Lobels Holdings, meanwhile, wholly owns Lobels Bread, Lobels Bulawayo and Polton Investments.
Lobels Bread and Lobels Bulawayo manufacture and distribute bread and confectionery, including prime white loaf, high fibre loaf, wholemeal loaf, whole wheat loaf, tea loaf and rolls.
Lobels Holdings is already a customer of Mega Market, with the acquirer currently supplying between 20% and 25% of its flour requirements.
According to the parties, the merger is intended to support investment in local manufacturing capacity, improve operational and supply chain efficiencies, strengthen business sustainability, and enhance coordination across logistics and production.
In approving the transaction, the commission imposed four key conditions, applicable for an initial period of two years.
The first concerns flour sourcing diversity: Lobels Holdings and its subsidiaries will not be permitted to source their entire bread flour requirements from Mega Market.
“It must procure at least 50 per cent of bread flour from other local wheat millers, subject to reasonable commercial terms. The aim is to preserve a vibrant market for flour,” the commission said.
The second condition requires non-discriminatory supply. Mega Market Milling must continue to make flour available to third-party bakery customers on non-discriminatory, arm’s-length commercial terms.
The merged entity is barred from favouring Lobels over rival bakeries on pricing, discounts, rebates, flour quality, product allocation, delivery schedules, credit terms or product availability.
The commission also barred any merger-related job cuts at Lobels for a period of 24 months.
The approval comes as Mega Market continues to rapidly expand its milling business. Its new wheat mill in Mutare can process 300 tonnes of wheat a day, alongside a 100-tonne-per-day maize mill, with a further 450-tonne-per-day wheat mill and 200-tonne-per-day maize mill also planned.
More: The Herald, newZWire
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