Proposed ₹131 Crore Crickley Dairy Acquisition Faces Hurdle After Key Condition Misses September 30 Deadline
Varun Beverages’ proposed acquisition of South African dairy company Crickley Dairy Proprietary Limited has been referred to arbitration after a key condition required to complete the transaction was not fulfilled by the September 30, 2026 deadline.
The company said its South African subsidiary, The Beverage Company Proprietary Limited (Bevco), has initiated arbitration proceedings before the Arbitration Foundation of Southern Africa (AFSA). Crickley Dairy and its parent company, Clark Holdings Proprietary Limited, have been named as the opposing parties.
Deal Valued at Around ₹131 Crore
Bevco had entered into an agreement on March 17, 2026, to acquire 100% of Crickley Dairy from Clark Holdings.
The transaction valued the South African dairy business 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 help Bevco expand beyond its existing portfolio and enter additional categories, particularly value-added dairy-based beverages.
Key Condition Remained Unfulfilled
The transaction was subject to several regulatory and other conditions, including approval from the Competition Commission of South Africa, where applicable.
However, the required condition precedent was not fulfilled by the agreed September 30 long-stop date. As a result, the matter has now moved to arbitration.
Varun Beverages has not disclosed which specific condition remained outstanding or provided details about the next steps in the arbitration proceedings.
Financial Exposure Limited to Acquisition Cost
Varun Beverages said its financial exposure related to the proposed transaction is limited to the acquisition cost specified in the agreement.
The arbitration means the proposed acquisition is currently on hold while the parties seek to resolve the matter through the legal process.
Varun Beverages Expands Into New Categories
The development comes as Varun Beverages continues to explore opportunities beyond its traditional soft drinks and non-alcoholic beverage business.
In August 2026, the company announced plans to establish 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.
The company plans to operate the proposed alcohol business separately from its existing beverage operations.
Market Update
Varun Beverages shares closed at ₹432.75 on the NSE on September 30, recording a 0.64% gain during the session.
The outcome of the arbitration will determine the next steps regarding the proposed Crickley Dairy acquisition.
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