Tanzanian investor Amsons Group has officially secured regulatory approval from the Kenya Ministry of Mining for its proposed acquisition of Bamburi Cement, a leading cement manufacturer in Kenya. The Ksh. 23.9 billion deal positions Amsons Industries Kenya to take full ownership of Bamburi Cement, enhancing its footprint in East Africa’s cement industry. This strategic move underscores the growing interest of regional investors in Kenya’s construction and manufacturing sector and highlights Bamburi Cement as a prime target for expansion in the Kenyan cement market.
Amsons Group CEO Edha Nahdi expressed confidence in the acquisition’s smooth finalization as the offer period nears its close on December 5. “Securing all regulatory approvals shows a strong commitment to completing this transaction,” Nahdi stated in a press release, reinforcing the credibility of their offer.
The deal has also received an unconditional green light from the Common Market for Eastern and Southern Africa (COMESA) Competition Commission, further bolstering Amsons’ position in the market. “With the support of KCB Investment Bank, we are committed to ensuring a seamless closing process, ensuring swift payment to Bamburi shareholders who accept our offer,” Nahdi added.
Bamburi Cement, primarily owned by Swiss cement giant Holcim, has a 58.6% shareholding controlled through Fincem Holding and Kencem Holding. The approval comes as Amsons looks to expand its footprint in the cement sector, adding to its diverse operations in bulk oil, petroleum importation, cement manufacturing, wheat flour milling, LPG, and transportation.
The acquisition offer follows a rival bid from Kenyan company Savannah Clinker, which proposed Ksh. 25.4 billion for Bamburi in August. However, Savannah’s bid has faced complications after its chairman, Benson Ndeta, was arrested in relation to a fraudulent Ksh. 700 million deal. Despite a High Court ruling halting his prosecution, Ndeta’s legal issues have cast a shadow over his bid.
Meanwhile, Holcim’s recent announcement that it will exit its Nigerian operations by selling its 84% stake in Lafarge Africa in a Ksh. 129 billion deal highlights the company’s strategy to focus on high-growth regions like North America.
As the offer period draws to a close, Amsons is poised to finalize the acquisition, presenting an exciting opportunity for Bamburi Cement’s shareholders and reinforcing Amsons’ ambitions in East Africa’s cement industry.
