Tanzanian manufacturing and energy conglomerate Amsons Group has received a green light from Kenya's Ministry of Mining to proceed with its proposed acquisition of Bamburi Cement.
Through its Kenyan subsidiary, Amsons Industries Kenya, the group submitted a Ksh.23.9 billion offer in July 2024 to acquire a full 100% stake in Bamburi Cement, a publicly listed company.
In a statement released ahead of the December 5 closing of the offer period, Amsons Group CEO Edha Nahdi expressed confidence in the deal’s success.
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The transaction has also received unconditional clearance from the COMESA (Common Market for Eastern and Southern Africa) Competition Commission, further boosting investor confidence.
Amsons emphasized its dedication to a smooth transaction process supported by KCB Investment Bank and promised prompt payouts to shareholders who accept the offer.
Bamburi Cement’s majority shareholder, Swiss cement giant Holcim, holds a 58.6% stake through subsidiaries Fincem Holding and Kencem Holding.
The acquisition aligns with Holcim’s recent strategy of focusing on high-growth regions, as evidenced by its decision to sell an 84% stake in Lafarge Africa for $1 billion (approximately Ksh.129 billion).
Kenyan company Savannah Clinker has also entered the fray, offering Ksh.25.4 billion for Bamburi Cement in August. Savannah proposed an additional Ksh.1.8 billion payouts to shareholders if the deal materializes, with a per-share offer of Ksh.70, which is Ksh.5 higher than Amsons' bid.
Savannah Clinker’s chairman, Benson Ndeta, has recently faced legal challenges, with allegations of fraud related to a Ksh.700 million expansion deal for the company. While some politicians have labeled the charges as a ploy to derail Savannah’s Bamburi bid, Ndeta’s case will be mentioned in court on January 21, 2024.
Founded in 2006, Amsons Group is a Tanzanian family-owned conglomerate with an annual turnover exceeding $1 billion (Ksh.129 billion). Its business portfolio spans bulk oil and petroleum imports, cement manufacturing, wheat flour milling, LPG distribution, and transportation.
