Varun Beverages’ proposed acquisition of South African dairy company Crickley Dairy Proprietary Limited has moved to arbitration after a condition required to complete the transaction was not fulfilled by the September 30, 2026 long-stop date.
The company said on September 30 that its South African subsidiary, The Beverage Company Proprietary Limited (Bevco), had referred the matter to the Arbitration Foundation of Southern Africa. Crickley Dairy and its parent company, Clark Holdings Proprietary Limited, have been named as the opposing parties in the arbitration.
Acquisition Valued at ZAR 238 Million
Bevco had agreed to acquire 100% of Crickley Dairy from Clark Holdings under an agreement signed on March 17, 2026. The proposed transaction valued Crickley Dairy at an enterprise value of ZAR 238 million, equivalent to approximately ₹131.47 crore, based on the exchange rate disclosed by Varun Beverages.
The acquisition was intended to expand Bevco’s portfolio into additional beverage categories, particularly value-added dairy-based drinks.
The transaction was subject to several conditions, including regulatory and other approvals. Where applicable, approval from the Competition Commission of South Africa was also part of the transaction requirements.
| Particular | Details |
|---|---|
| Acquirer | The Beverage Company Proprietary Limited |
| Parent company | Varun Beverages |
| Target | Crickley Dairy Proprietary Limited |
| Seller | Clark Holdings Proprietary Limited |
| Agreement date | March 17, 2026 |
| Enterprise value | ZAR 238 million |
| Approx. Indian value | ₹131.47 crore |
| Ownership proposed | 100% |
| Current status | Referred to arbitration |
| Arbitration body | Arbitration Foundation of Southern Africa |
Varun Beverages said the relevant condition precedent had not been fulfilled by the September 30 deadline. As a result, the parties have moved the matter into the arbitration process.
The company has not disclosed the specific condition that remained outstanding. It also did not provide details regarding the expected duration of the arbitration or the potential outcome of the proceedings.
Exposure Limited to Acquisition Cost
Varun Beverages said its financial exposure related to the proposed transaction is limited to the acquisition cost specified under the agreement.
The disclosure provides some indication of the company’s financial position concerning the proposed acquisition, although the company has not provided further details about potential changes to the transaction or the terms that could emerge from the arbitration process.
The development effectively places the planned acquisition on hold while the parties seek to resolve the outstanding issue.
The proposed Crickley Dairy acquisition was part of Bevco’s broader strategy to diversify its product portfolio. Moving into value-added dairy-based beverages would have provided the South African subsidiary with exposure to a category beyond its established non-alcoholic beverage operations.
Other Diversification Plans
The arbitration comes as Varun Beverages continues to explore opportunities outside its traditional soft drinks business.
In August 2026, the company announced that its board had approved the incorporation of a wholly owned subsidiary, KIVA Spirits and Company Limited, for manufacturing and selling ready-to-drink alcoholic beverages and related products, subject to regulatory approvals.
The proposed alcohol business is planned as a separate operation rather than being incorporated into Varun Beverages’ existing beverage business.
These developments indicate that the company is pursuing multiple avenues for portfolio expansion, although the Crickley Dairy transaction remains subject to the outcome of the arbitration process.
Varun Beverages shares closed at ₹432.75 on September 30, recording a 0.64% increase on the NSE.
For the dairy and beverage industries, the proposed Crickley Dairy acquisition remains a development to watch, particularly because the original transaction was intended to give Bevco an entry into value-added dairy beverages. The next stage will depend on the arbitration proceedings and the resolution of the unfulfilled condition precedent.
