AMSONS Group, a prominent Tanzanian conglomerate with a diversified portfolio spanning energy, manufacturing, and logistics, has achieved a major milestone in its pursuit to acquire up to 100% of shares in Bamburi Cement Plc. The proposed acquisition has received two critical regulatory approvals—one from Kenya’s Ministry of Mining, Blue Economy and Maritime Affairs, and another from the COMESA Competition Commission.
This development paves the way for AMSONS Group to finalize its ambitious acquisition of one of Kenya’s leading cement manufacturers, a move that signals potential shifts in the East African cement market landscape.
The Ministry of Mining approved the transaction under the Mining Act for the Katani Mining License (Registration Number ML/2017/0011), ensuring compliance with Kenya’s mining regulations. Additionally, the COMESA Competition Commission granted unconditional clearance, affirming that the transaction meets the regional competition requirements set by the Common Market for Eastern and Southern Africa (COMESA).
These approvals underscore AMSONS Group’s adherence to regulatory frameworks, reflecting their commitment to transparency and ethical business practices.
AMSONS Group CEO Edha Nahdi expressed confidence in the acquisition process following the receipt of these approvals:
“Securing all the regulatory approvals is a strong vote of confidence in our unwavering commitment to this transaction. As we approach the close of the offer period, we are confident in our ability to finalize the acquisition smoothly while delivering value to Bamburi Cement shareholders. This milestone reinforces the strength and credibility of our offer.”
The CEO’s remarks highlight AMSONS Group’s strategic focus on delivering value to shareholders and reinforcing its position as a leading player in the regional manufacturing and energy sectors.
The regulatory green light comes as the offer period for the transaction nears its closure on Thursday, December 5, 2024. AMSONS Group, through its Kenyan subsidiary Amsons Industries (K) Ltd., had earlier issued a binding offer in July to acquire a 100% stake in Bamburi Cement Plc (NSE: BAMB).
The approval marks the final stretch of this high-stakes acquisition, setting the stage for the consolidation of Bamburi Cement Plc under AMSONS Group’s robust industrial umbrella.
Bamburi Cement Plc is a significant player in Kenya’s cement industry, with operations spanning cement manufacturing, concrete production, and a strong market presence. Here’s what the acquisition could mean for Bamburi Cement and its stakeholders:
1. Enhanced Growth Prospects
AMSONS Group brings vast expertise and resources in energy, manufacturing, and logistics. Under its leadership, Bamburi Cement could experience increased efficiency, expansion into new markets, and greater competitiveness in the East African region.
2. Increased Shareholder Value
AMSONS has committed to ensuring a seamless closing process, including prompt payment to shareholders who accept the offer. This acquisition provides shareholders with an opportunity to unlock the value of their investments.
3. Strengthened Regional Presence
With operations across Tanzania and now a foothold in Kenya, AMSONS Group is poised to establish itself as a key regional player in the cement and construction materials industry.
The transaction has been supported by KCB Investment Bank, which has played a pivotal role as the financial advisor for AMSONS Group. KCB’s involvement has ensured a smooth transaction process, aligning with AMSONS’ vision of transparency and shareholder satisfaction.
Founded in Tanzania, AMSONS Group is one of the country’s largest business conglomerates, with interests in:
- Energy: Distribution and retail of petroleum products.
- Manufacturing: Production of construction materials, among other industrial goods.
- Logistics: Providing integrated transport and storage solutions.
The group has steadily expanded its operations across East Africa, with its latest focus being the strategic acquisition of Bamburi Cement Plc to cement its dominance in the region’s construction and infrastructure sectors.
The acquisition of Bamburi Cement Plc by AMSONS Group could trigger significant changes in Kenya’s construction and real estate sectors.
1. Increased Competition
With AMSONS Group’s entry, other players in Kenya’s cement industry, such as East African Portland Cement and Mombasa Cement, may need to innovate and optimize their operations to maintain market share.
2. Investment in Innovation
AMSONS Group’s history of investing in advanced manufacturing technologies could lead to the introduction of innovative, cost-effective cement products tailored to the region’s construction needs.
3. Job Creation and Economic Growth
The acquisition is expected to lead to job creation, both directly within Bamburi Cement and indirectly through the increased demand for raw materials, logistics, and construction projects.
Established in 1951, Bamburi Cement Plc has grown into one of Kenya’s leading cement manufacturers, with operations spanning:
- Cement manufacturing plants in Mombasa and Nairobi.
- A strong market presence in Kenya, Uganda, and Rwanda.
- Pioneering environmental initiatives, such as rehabilitating quarries into ecological parks like Haller Park.
Its acquisition by AMSONS Group marks the beginning of a new chapter in its long-standing history.
As the offer period closes on December 5, 2024, the following steps are expected:
- Finalization of the Transaction
AMSONS will complete all necessary paperwork and formalities to finalize the acquisition. - Shareholder Payments
Shareholders who accept AMSONS’ offer will receive prompt payments for their shares. - Integration of Operations
Bamburi Cement Plc will begin the process of integrating its operations with AMSONS Group, focusing on aligning corporate strategies and leveraging synergies.
AMSONS Group’s acquisition of Bamburi Cement Plc marks a significant milestone in the East African cement industry. With regulatory approvals secured, the conglomerate is poised to transform Bamburi Cement into a regional powerhouse, delivering value to shareholders and fostering economic growth.
As the transaction nears its conclusion, all eyes are on AMSONS Group and its ambitious plans for the future of Bamburi Cement.
