Harare — IN what could be considered to be one of the biggest economic empowerment deals this year, the Government has given the nod to a consortium of Schweppes workers and management to buy a 51 percent stake in the company with the remainder being taken up by Delta Corporation.

Most of the regulatory approvals have been granted and the final exchange control approval is expected any time soon. The Schweppes management and workers formed an investment vehicle through which they acquired the controlling stake in the cordials manufacturing company with the managers holding 20 percent of the shares and the workers with 31 percent. The consortium is comprised of six senior managers and 400 workers.

Schweppes managing director, Mr Charles Msipa told Herald Business yesterday that the management and workers at the company were looking forward to a fruitful relationship from the proposed marriage with Delta Corporation, a torch bearer in the beverages sector.

Prior to the transaction, Schweppes was wholly owned by the Coca-Cola Company. Despite concerns over the relationship between Delta Corporation and Schweppes particularly relating to the possible creation of a monopoly in the beverages sector, Mr Msipa said this was not the case.

"We have approached the Competition and Tariff Commission and tabled our proposal and explained the nature of our relationship with Delta. It is a strategic partnership under which we will benefit from Delta's established and vast distribution network which will enable us to make sure that Schweppes products are readily available throughout the country.

"Delta is only coming in as a shareholder and we will obviously take advantage of its dominance in the beverages sector but we are not becoming a Delta subsidiary."

The Schweppes deal has already been approved by Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere who described it as a milestone in empowering Zimbabweans. "Contrary to the widely held view that the Government was focusing on expropriating foreign-owned companies, here is a clear example of effectively transferring wealth to the people," he said.

A new eight-member board of directors is expected to be appointed soon after the exchange control approvals are granted and it will compose of four members from the indigenous consortium, three from Delta and an independent chairman agreed to by all stakeholders.

The consortium will also be responsible for appointing a managing director although indications were that Mr Msipa would continue in that position. There were no other major management changes anticipated in the wake of the finalisation of the deal.

Asked about the pending litigation of claims of ownership by the Mutumwa Mawere-owned Africa Resources Limited and Petter Trading, Mr Msipa said that the matter was still before the Supreme Court which had indefinitely adjourned the case.

He however said they will respect the Supreme Court outcome.