Source: Mergers and acquisitions see record growth in 2025 – herald
Nqobile Bhebhe, Zimpapers Business Hub
ZIMBABWE recorded a sharp rise in mergers and acquisitions in 2025, reflecting renewed investor confidence, corporate restructuring and growing activity by both local and foreign firms, the Competition and Tariff Commission (CTC) has said.
CTC said the year marked a turning point in corporate transactions, with a significant increase in merger cases concluded and broader sector participation across the economy.
“Merger activity for the year 2025 stands out as a pivotal year, characterised by record transaction volumes, improved efficiency in merger assessment, strategic realignments across multiple sectors and increased visibility of the commission’s work within both the domestic and regional competition landscape,” said the commission in its February update.
“The commission handled 30 merger cases, out of which twenty-six merger decisions were made in 2025.
“Out of the 26 mergers where decisions were made, twenty-three transactions were approved without conditions, indicating that most transactions were unlikely to substantially lessen competition or pose public interest concerns.“Three (3) mergers were approved with conditions reflecting instances where the commission identified potential competition or public-interest risks that required mitigation.”
CTC added that a small number of transactions did not proceed after regulatory processes.
“However, two mergers were approved with conditions but later withdrawn and one transaction was prohibited and withdrawn. The commission concluded the year with one transaction under assessment,” said CTC.“This indicates a surge (by 85,7 percent) in merger cases concluded from 14 cases in 2024 to 26 cases in 2025, reflecting improved operational efficiency rate for the reporting period and commission’s commitment to timely merger review processes.”
According to CTC, several transactions were approved without conditions, cutting across tourism, transport, manufacturing, information and communication technology, energy and retail.
Notable deals include the acquisition of the entire issued share capital of Briolette Services (Montclair) (Pvt) Ltd by Rainbow Tourism Group in the tourism and hospitality sector.
In the logistics industry, Unifreight Limited acquired Nimbcon Trading (Pvt) Limited in a transaction combining horizontal and vertical elements.
Regional investors also featured, with Lactalis South Africa acquiring Vista 24 Pty Ltd in the dairy manufacturing sector, while Novus Holdings increased its shareholding in Mustek Ltd.
In the energy sector, Switzerland-based Deux Rivieres Holding SA acquired a 60 percent stake in Kensys Investments (Pvt) Ltd.
Locally, Pintail Trading (Pvt) Ltd proposed to acquire the assets of Nanavac Investments, trading as Choppies Zimbabwe.
Public interest considerations remained a central component of the commission’s merger evaluation process, particularly in relation to employment and broader economic impacts.
“Public interest considerations, such as employment, remained central to merger evaluations,” said CTC.
The structure of the transactions provided insight into the evolving nature of corporate activity in Zimbabwe.“In relation to the distribution of mergers by domicile, local-to-local transactions dominated, comprising 60 percent of the transactions, 23 percent were between foreign and local parties and 17 percent were between foreign-to-foreign parties,” said CTC.
“This merger profile reflects a combination of domestic economic priorities and the country’s growing integration into regional and global markets.
“The distribution also highlights the continued predominance of domestic consolidation, alongside growing foreign participation and portfolio restructuring.”
The commission noted that the patterns reflected both local corporate restructuring and the continued interest of international investors seeking exposure to Zimbabwe’s economic opportunities.
“2025 proved to be a defining year for merger activity in Zimbabwe, marked by strong growth in both local and regional transactions, reflecting heightened corporate dynamism and renewed investor interest in the economy,” said CTC.
“The dominance of local-to-local transactions pointed to ongoing domestic consolidation, while the participation of foreign firms illustrated broader global restructuring trends and sustained appetite for opportunities in the Zimbabwean market.
“At the same time, these transactions reinforce the importance of effective regulatory oversight to ensure that cross-border investments deliver broader public interest benefits, including job retention, skills and technology spill overs and sustained inflows of foreign direct investment.”
The commission said the drivers behind the transactions were varied, ranging from corporate restructuring to expansion strategies and recapitalisation initiatives.
“Motives driving these mergers were diverse and strategic. For local-to-local transactions, primary drivers were recapitalisation to support operational expansion, modernisation of infrastructure and purchase of equipment,” said the commission.
“For some transactions, themes of improving underperforming businesses, refocusing on core operations, strategic realignment and divesting from non-core assets were prominent, reflecting evolving business strategies in response to shifting market conditions.”
Cross-border transactions reflected broader global corporate strategies.
“Foreign-to-local mergers were largely driven by foreign firms seeking to enter or deepen their presence in the Zimbabwean market,” said CTC.“Conversely, some foreign companies opted to divest from Zimbabwe, carving out operations as part of broader global restructuring.
“This highlights the extent to which firms used mergers and acquisitions as strategic tools to navigate evolving economic conditions, strengthen competitiveness and reposition for future growth.”
The sectoral distribution of mergers showed strong activity in productive industries.
The manufacturing sector accounted for the largest share of transactions, at 30 percent; followed by the hospitality sector, at 13 percent.The retail, mining and warehousing and logistics sectors each accounted for 10 percent of the deals concluded during the year.
Major source countries for concluded mergers included Zimbabwe, South Africa, Mauritius, the Netherlands and Switzerland.
The commission noted that Mauritius-registered companies played a significant role in transactions involving foreign and local firms.
Mauritius-registered companies dominated transactions between foreign and local parties based on their favourable tax regime, including low corporate tax rates, tax treaties with countries that avoid double taxation and exemptions of certain types of income.
“The commission anticipates sustained growth in merger notifications and restrictive practice cases in 2026, supported by strengthened regional co-operation and expanded stakeholder engagement through awareness programmes and competition training initiatives,” said the commission.
“Strategic priorities will focus on enhancing institutional effectiveness, strengthening market intelligence, addressing anti-competitive conduct and promoting a competitive market environment that underpins economic revitalisation.”
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