TANZANIA: TANZANIA-BASED conglomerate, Amsons Group, has set a new East African record with an audacious bid of 180 million US dollars (approximately 480bn/-) to acquire Kenya’s Bamburi Cement PLC from Holcim.
This move marks a significant milestone in regional mergers and acquisitions, positioning Amsons Group as a key player in East Africa’s cement sector.
Amsons Group, known for its diversified interests spanning energy, construction, food and transport, aims to acquire up to a 100 per cent stake in Bamburi Cement, an iconic blue-chip company listed on the Nairobi Securities Exchange (NSE).
The conglomerate’s Kenyan subsidiary and investment vehicle, Amsons Industries (K) Ltd, has issued a binding offer of 1,300 Kenyan Shillings per share for the acquisition.
Amsons Group Managing Director, Mr Edha Nahdi, said the proposed cross border acquisition would deepen the group’s position in the cement sector in East Africa as part of the regional economic development and market integration ideals.
“This investment aligns with our regional growth strategy and commitment to East Africa’s economic development and market integration. It marks our formal entry into the Kenyan market, where we plan to expand our footprint across various industries in the coming months.”
He said Amsons Group’s success in Tanzania’s construction market with brands like ‘Camel Cement’ and ‘Tembo Cement’ underscore their capability to leverage advanced manufacturing technology and strong partnerships.
“We intend to build on Bamburi Cement’s solid foundation, enhancing its market presence and operational efficiency.”
The cash offer represents a significant premium above Bamburi Cement’s recent share price on the NSE, signalling confidence in the company’s growth potential under new ownership, he added.
“We have great plans to deepen our investment in Kenya and in Bamburi,” said Mr Nahdi.
Established in 2006, Amsons Group has grown to achieve over $1 billion in annual turnover, initially focusing on bulk oil and petroleum products under the Camel Oil Tanzania brand.
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The conglomerate’s expansion into Kenya marks a strategic move to capitalise on cross-border opportunities and strengthen economic ties between Tanzania and Kenya.
This acquisition follows Amsons Group’s recent purchase of Holcim’s 65 per cent stake in Mbeya Cement Company Ltd in Tanzania, further consolidating its position in the regional cement industry.
Holcim’s Regional Head of Asia, Middle East, and Africa, Mr Martin Kriegner, commented, “This agreement underscores Holcim’s strategy to reinforce its leadership in core markets with sustainable building solutions. We are confident that Amsons Group is well-positioned to drive Bamburi Cement PLC’s future growth.
” Vertex International Securities Advisory and Capital Markets Manager, Ahmed Nganya said “I think this is a watershed moment for our market as the most of acquisitions in the East Africa originate from Kenya to other regional members”.
Regarding the cement industry, he noted that the impact on the Tanzanian market would likely be minimal, given that the company being acquired is primarily active in Kenya.
In recent years, Tanzanian conglomerates have increasingly ventured into Kenya, reversing historical investment trend, underscoring Tanzania’s growing influence in the Kenyan market, where Tanzanian investors are increasingly leveraging cross-border opportunities.
In February this year, Kenya’s President, William Ruto commissioned a multibillionshilling cooking gas plant owned by Tanzanian tycoon, Rostam Aziz, a project that promises to bring competition in the sector and bring down consumer prices of the commodity.
