Bevco had agreed to acquire 100% of the South African dairy company from Clark Holdings Proprietary Limited under an agreement signed on March 17, 2026.
The deal valued Crickley Dairy at an enterprise value of ZAR 238 million, or around ₹131.47 crore, based on the exchange rate disclosed by Varun Beverages.
The proposed acquisition was aimed at expanding Bevco’s product portfolio into new 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.
Varun Beverages said the deal has now been referred to the Arbitration Foundation of Southern Africa (AFSA) because the condition precedent was not fulfilled by the September 30 long-stop date.
Crickley Dairy and Clark Holdings have been named as the opposing parties in the arbitration.
Varun Beverages’ exposure limited to acquisition cost
Varun Beverages said its financial exposure in connection with the transaction is limited to the acquisition cost mentioned in the agreement.
The company did not disclose further details on the condition that remained unfulfilled or the next steps in the arbitration process.
The development puts the proposed dairy acquisition on hold as the parties seek to resolve the issue through arbitration.
Company also plans to enter alcohol business
The development comes as Varun Beverages pursues other diversification plans beyond its core soft drinks and non-alcoholic beverages business.
In August, the company said its board had approved the incorporation of a wholly owned subsidiary, KIVA Spirits and Company Limited, to manufacture and sell ready-to-drink (RTD) alcoholic beverages and related products, subject to regulatory approvals.
The company plans to build the alcohol business through a separate subsidiary rather than its existing beverage operations.
Varun Beverages shares closed at ₹432.75 on September 30, up 0.64% on the NSE.
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