Dairibord, Dendairy merger off
Harare (New Ziana) – Zimbabwe’s largest dairy processor, Dairibord Holdings on Monday called off its plans to merge with Dendairy after over a year of negotiations.
Dairiboard is listed on the Zimbabwe Stock Exchange while Kwekwe-based Dendairy, formed in 2004, is owned by the Coetzee family.
Last year, Dairibord, the country’s biggest dairy company, announced it was discussing a merger with Dendairy, the number two producer.
But in a cautionary statement on Monday, Dairibord said talks had been called off, though without citing reasons.
“Dairibord Holdings Limited and Dendairy (Private) Limited have been exploring opportunities for creating sustainable shareholder value for mutual benefit. Shareholders are referred to the cautionary announcement first published on 1 July 2020 and are advised that the conclusion of the discussions indicates that it is in the interest of both parties to discontinue the process and remain as separate entities.
“The contents of the cautionary have ceased to have any effect on the company. Accordingly, caution is no longer required to be exercised when dealing in the company’s shares,” said Dairibord.
The merger, if it had succeeded, could have produced a dominant milk processing company as the two are already major players in the sector.