- AMSONS Group granted regulatory go ahead to acquire Bamburi cement.
- The family-owned business has partnered with KCB Investment Bank as its transaction adviser.
- Amson made its initial offer when Bamburi Cement’s shares were trading at Sh45, but the stock has since risen, trading at Sh66 on Thursday afternoon.
Tanzanian business conglomerate AMSONS Group has received regulatory approval from the COMESA Competition Commission for its proposed acquisition of up to 100 per cent of Bamburi Cement.
The move coming at a time that Kenya’s Savannah Clinker Limited has already raised its bid for the acquisition of Bamburi Cement, even though its offer already exceeds Tanzania Amsoms’ competing offer.
In a statement, the COMESA Competition Commission confirmed that the proposed acquisition falls within its ambit and does not pose a competition risk within the common market.
“It is unlikely that the proposed merger will lead to the creation of a dominant position that would enable the parties to engage in unilateral conduct in the market,” COMESA Competition Commission stated in its decision providing its approval to the proposed acquisition.
The Committee Responsible for Initial Determinations (CID) further noted that the merger would not hinder competition in the Common Market as it aligns with the public interest and will instead improve trade among COMESA Member states.
Read also: Bamburi Cement targets 40 per cent cut in carbon emissions by 2030
Amson Group, had in August gained the backing of major shareholders in its push to acquire Kenya’s Bamburi Cement at a cost of $180 million (about Sh23.3 billion).
“The CID determined that the merger is not likely to substantially prevent or lessen competition in the Common Market or a substantial part of it, nor will it be contrary to the public interest. The CID further determined that the transaction is unlikely to negatively affect trade between Member States.”
In July, AMSONS Group, Tanzania’s leading manufacturing and energy giant, issued a binding offer to acquire up to a 100 percent stake in Bamburi Cement through its Kenyan subsidiary and investment vehicle, AMSONS Industries (K) Ltd.
AMSONS Group Granted Regulatory go Ahead to Acquire Bamburi
Speaking as he welcomed the COMESA Competition Commission’s approval, AMSON’S Group CEO Edha Nahdi said the transaction is part of the Group’s strategy to expand its footprint to the Kenyan market and trade across East Africa.
“The approval is a significant boost to our offer as we continue to engage investors of Bamburi Cement and remain confident that our acquisition bid will be successful as it presents a win-win scenario for the investors and our two countries,” said Nahdi.
The family-owned business has partnered with KCB Investment Bank as its transaction adviser.
Read also: Kenya’s Savannah Clinker counters Tanzania’s Amsons with $197 million Bamburi bid
Amsons Group buyout of Bamburi Cement
The competition to take over the cement maker has seen its share price grow in recent months at the Nairobi Securities Exchange.
Amson made its initial offer when Bamburi Cement’s shares were trading at Sh45, but the stock has since risen, trading at Sh66 on Thursday afternoon.
The two offers for the cement maker have dragged the deal. Bamburi Cement is majority-owned by Holcim through two investment vehicles—Fincem Holding and another undisclosed entity.
There was confusion last month after Holcim, the Swiss majority shareholder in Bamburi Cement, suspended a sale agreement with Tanzanian firm Amsons Group for its stake in the Kenyan cement company.
The two companies initially signed an irrevocable sale agreement in July, effectively barring third-party bids.
“On October 2, 2024, Amsons mutually agreed with Fincem and Kencem to terminate the irrevocable undertaking entered into on July 10, 2024,” Amsons stated in offer letters, clarifying that Bamburi shareholders are now free to consider other offers.
Savannah Clinker, founded by Ndeta in 2019, specializes in cement manufacturing and is developing a limestone and clinker processing plant in Kitui County. Meanwhile, Amsons Group has diverse interests in cement, fuel, and transport.
Holcim’s Bamburi stake is held through Fincem Holding Limited and Kencem Holding Limited with about 58.3 percent shares between each.
