Amsons Group Gets Comesa Approval for Bamburi Cement Buyout

: Tanzania’s Amsons Group wins Comesa approval to acquire Bamburi Cement.
Competing bids and regional market growth add intrigue to the deal.

Tanzanian conglomerate Amsons Group has received regulatory approval from the Common
Market for Eastern and Southern Africa’s (Comesa) Competition Commission to acquire
up to 100% of Kenya’s Bamburi Cement.

The approval, confirmed on November 14, 2024, indicates the proposed acquisition does not
present any competition risks within the region. According to the commission, the transaction
aligns with Comesa’s public interest objectives and supports trade among member states.

“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,” the commission stated.

The Committee Responsible for Initial Determinations (CID), a Comesa body, also
confirmed the transaction would not hinder competition.

“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 transaction is also unlikely to negatively affect trade
between Member States,” the statement added.

Competing Offers for Bamburi Cement

Amsons Group initially offered to acquire Bamburi Cement for KSh65 per share, valuing the
company at KSh23.59 billion. However, it faces competition from Savannah Clinker, owned
by businessman Benson Ndeta, which recently raised its offer to KSh76.55 per share, up from
its initial KSh70 per share bid in August 2024.

Strategic Expansion by Amsons

Amsons Group, a leading player in Tanzania’s manufacturing and energy sectors, is pursuing
the acquisition through its Kenyan subsidiary, Amsons Industries (K) Ltd. This move is part of
the Group’s strategy to establish a strong presence in the Kenyan market and enhance 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.

It presents a win-win scenario for investors and our two countries,” said Amsons
Group CEO Edha Nahdi.

The Group has appointed KCB Investment Bank as its transaction adviser, highlighting its
professional approach to entering the Kenyan market.

What’s Next?

The acquisition battle for Bamburi Cement highlights the growing competition in East Africa’s
cement industry. If successful, Amsons’ entry into Kenya would strengthen its regional presence while providing much-needed capital and strategic synergies for Bamburi.

However, Savannah Clinker’s improved bid signals a potential showdown as shareholders
evaluate which offer best aligns with their interests.

As Comesa emphasises trade integration and competition, the outcome of this acquisition will
likely have significant implications for Kenya’s industrial sector and the broader East African
market.