CTC clears Delta’s move as it snaps up more stake in Schweppes

CLOUDINE MATOLA

Zimbabwe’s competition watchdog, the Competition and Tariff Commission (CTC), has approved a major corporate transaction that sees Delta Corporation snap up a controlling stake in Schweppes Holdings Africa Limited, increasing its shareholding from 49% to 69%.

The strategic move, effective April 1, 2025, gives Delta full control of the soft drinks producer and shifts Schweppes’ status from an associate to a subsidiary within the Delta group.

Best known for bottling Coca-Cola products and manufacturing household brands such as Mazoe, Minute Maid, and Bonaqua, Schweppes plays a key role in Zimbabwe’s non-alcoholic beverages market.

With this acquisition now officially cleared by the CTC, Delta tightens its grip on the beverages value chain, enhancing its market position across both alcoholic and non-alcoholic categories.

Confirming the development, Delta Corporation board chairman Todd Moyo said:

“The Group has increased its shareholding in the company from 49% to 69% with effect from 1 April 2025, which will result in the unit being accounted for as a subsidiary from that date.”

Industry analysts view the deal as a strategic consolidation that will unlock efficiencies in supply chain management, strengthen Delta’s brand influence, and expand its footprint in the growing soft drinks segment. Schweppes, a significant player in its own right, now becomes a fully integrated arm of Delta’s operations—deepening the company’s control over manufacturing, distribution, and marketing.

While Delta’s strategic expansion dominated headlines, the CTC also confirmed its approval of another significant transaction: Rainbow Tourism Group (RTG)’s acquisition of the Montclair Hotel and Casino in Nyanga for US$5 million. The commission gave the green light to the RTG-Montclair merger without conditions, signalling confidence that the deal would not distort market competition.

In its evaluation, the CTC said it considered several factors, including the level of market concentration, the presence of countervailing buyer power, and whether the transaction would result in the removal of a significant competitive force in the hospitality sector.

“The hotel and hospitality market is characterised by numerous players with over 100 hotels in Zimbabwe. Customers have a variety of choices and switching costs are low. Also, the increasing use of online travel agencies has empowered customers and introduced price transparency, providing greater transparency and choice,” the commission said.

The commission further noted that Montclair is a relatively small player, operating only one hotel and holding a limited market share. RTG itself maintains a modest presence in the market. Even when combined, the two entities do not possess a dominant share and will continue to trail behind market leader African Sun.

“Pre-merger, RTG holds a modest market share, while Montclair accounts for a relatively small portion. Resultantly, the combined market share of the merged entity remains limited. The merged entity will continue to rank behind African Sun, which retains a larger market share. Therefore, the acquisition will not significantly enhance the market power of the merged entity,” the commission added.

Both approvals come at a time when the CTC is strengthening its oversight role in the economy. The commission said it expects a rise in merger reviews and restrictive practice investigations in 2025, driven by growing regional integration and increased stakeholder engagement.

“The Commission anticipates continued growth in merger activity and restrictive practice cases in 2025, bolstered by regional collaboration and enhanced stakeholder engagement through awareness initiatives and competition trainings. Strategic priorities will focus on enhancing agency effectiveness, market intelligence, addressing anticompetitive conduct, and fostering a competitive environment in support of economic revitalisation,” the commission said.

As Delta cements its control of Schweppes and RTG expands its footprint in the Eastern Highlands, the CTC’s clear and proactive regulatory stance signals a maturing market where corporate strategy and competition policy are increasingly intertwined. The competition watchdog’s actions reflect a broader vision for fair consolidation, innovation, and sustainable growth in Zimbabwe’s evolving business landscape.