The biggest beverage company in the country Delta Corporation Limited is in the process of acquiring Econet’s subsidiary Mutare Bottling Company as the company seeks to be the most admired Beverage Company in the region.
In a statement accompanying the company’s half-year financial results, the company chairperson Canaan Dube said the deal, at last, gives Delta access to Manicaland’s soft drink market, which had been controlled by Mutare Bottling Company, and permits Econet to let go of non-core assets that have been attempting to sell for more than a decade.
“The organization is settling discussions with The Coca-Cola Company for the extension of the sparkling beverages franchise territory to include Manicaland and has entered an agreement to buy the packaging assets of Mutare Bottling Company (MBC),” said Delta chairperson Canaan Dube.
The company chairperson further added that this development will allow the company to leverage on its scale and combined asset base to meet the demands at national level.
“This is a welcome development which will allow the company to leverage on its scale and combined asset base to meet the sparkling beverages demand across the country. The transaction is subject to regulatory approvals.”
Delta has, however, did not disclose the investment fee to acquire MBC.
MBC has been under the control of Econet since 2008 during the country’s hyper-inflationary period when the company was making huge profits.