Varun Beverages’ South African Dairy Acquisition Enters Arbitration
Bevco, the South African subsidiary of Varun Beverages, submitted the dispute to the Arbitration Foundation of Southern Africa on September 30. Crickley Dairy Proprietary Limited and its parent, Clark Holdings Proprietary Limited, are the opposing parties in the proceedings.
The transaction agreement was signed on March 17, 2026. Under its terms, Bevco was to acquire all of Crickley Dairy from Clark Holdings. Varun Beverages placed the target’s enterprise value at ZAR 238 million, equivalent to about ₹131.47 crore using the exchange rate disclosed by the company.
Completion depended on several conditions, including regulatory clearances and other approvals. Where required, the parties also needed approval from South Africa’s Competition Commission. Varun Beverages said a relevant condition precedent had not been satisfied by the long-stop date of September 30.
The company has not identified the outstanding condition. It has also not given an expected timetable for the arbitration or described the possible result of the proceedings. The referral has left the proposed purchase unresolved while the parties address the issue through the designated arbitration process.
Varun Beverages said its financial exposure to the proposed transaction is limited to the acquisition cost set out in the agreement. The company did not disclose whether the arbitration could alter the transaction’s terms or lead to changes in the proposed purchase.
The acquisition was intended to broaden Bevco’s activities into additional beverage categories, including value-added dairy drinks. In August 2026, Varun Beverages separately announced that its board had approved the incorporation of KIVA Spirits and Company Limited, a wholly owned subsidiary intended to manufacture and sell ready-to-drink alcoholic beverages and related products, subject to regulatory approvals. Varun Beverages shares closed at ₹432.75 on the National Stock Exchange on September 30, up 0.64%.
