The Commission authorised the acquisition of Dairibord Limited by Lilongwe Dairy (2001) Limited.
The acquiring firm, Lilongwe Dairy was a company registered in Malawi, whose main line of business was manufacturing dairy products and fruit juices such as First Choice Fresh Milk, UHT Flavoured Milk, Flavoured Yoghurt, and Long Life Yoghurt drink, Flavoured Drinking Yoghurt, ghee, Enjoy, Sunpride, fruit flavoured drinks and sour milk drink commonly known as Chambiko.
The target firm, Dairibord, was a subsidiary of Dairibord Holdings Limited, a company that manufactures and markets a range of dairy products such as fresh milk, UHT long life milk, Chambiko, ghee, yoghurts, fresh creams, ice creams, cheese, butter, different brands of fruit juices as well as mineral water.
The assessment established that the merger would create a dominant player. However, the merger would also save a failing firm and some jobs. The investigation further established that Dairibord already exited the Malawi market due to financial challenges. The investigations established that the transaction would likely result in efficiencies that would benefit consumers. Furthermore, it was established that the transaction would help prevent negative financial, economic and social developments that could potentially arise if the company failed.
Based on these findings, the Commission authorized the merger unconditionally.