Varun Beverages Ltd.’s South African subsidiary, The Beverage Company Proprietary Limited (Bevco), has referred its proposed acquisition of Crickley Dairy Proprietary Limited to arbitration after a condition required to complete the transaction was not fulfilled by the September 30, 2026 deadline.
Bevco had entered into a binding agreement on March 17, 2026, to acquire 100% of Crickley Dairy from Clark Holdings Proprietary Limited. The transaction carried an enterprise value of ZAR 238 million, equivalent to approximately ₹131.47 crore based on the exchange rate disclosed by Varun Beverages.
Deal Was Intended to Expand Dairy Portfolio
Crickley Dairy manufactures and distributes value-added dairy and juice-based drinks in South Africa. Its manufacturing facility is located in Queenstown.
The proposed acquisition was part of Varun Beverages' strategy to diversify beyond its core beverage portfolio and expand into categories including value-added dairy-based drinks.
The transaction was subject to regulatory and other approvals, including, where applicable, approval from the Competition Commission of South Africa.
Arbitration Follows Unfulfilled Condition
Varun Beverages said the transaction could not be completed because a condition precedent was not fulfilled by the September 30 long-stop date.
The matter has now been referred to the Arbitration Foundation of Southern Africa (AFSA), with Crickley Dairy and Clark Holdings named as the opposing parties. The company has not disclosed the specific condition that remained unfulfilled or further details of the arbitration process.
Varun Beverages has stated that its financial exposure in connection with the transaction is limited to the acquisition cost specified in the agreement.
Part of Broader South African Expansion
The development comes as Varun Beverages continues expanding its South African operations. Through Bevco, the company completed the acquisition of Twizza Proprietary Limited in March 2026 at an enterprise value of approximately ZAR 2.053 billion.
Varun Beverages had entered South Africa through the acquisition of The Beverage Company and has subsequently expanded its presence in the country's beverage market.
The Crickley Dairy transaction, if completed, would have added value-added dairy and juice-based products to this regional portfolio. The arbitration now places the proposed dairy acquisition on hold while the parties seek resolution through the arbitration process.
Source: Dairynews7x7 02 Oct, 2026 Read full article here
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