Savannah Clinker gains edge in Bamburi Cement takeover after Amsons, Holcim pullout

Omokolade Ajayi -
Key Points
  • Amsons Group and Holcim have terminated their sale agreement for Bamburi Cement, allowing Savannah Clinker to pursue a competing offer for the stake.
  • Savannah Clinker increased its bid to Ksh76.55 ($0.59) per share, valuing the deal at Ksh27.8 billion ($215.7 million). 
  • Bamburi Cement is a leader in sustainable construction in Sub-Saharan Africa, with significant stakes held by key investors like Baloobhai Patel.

Amsons Group, a Tanzanian family-owned conglomerate led by businessman Edha Nahdi, and Swiss building materials giant Holcim have terminated their irrevocable sale agreement for Amsons’ shares in Bamburi Cement, clearing the path for a rival offer from Savannah Clinker to secure the coveted 58.3 percent stake.

The withdrawal by Holcim from its sale obligations comes as Savannah Clinker raised its bid to Ksh76.55 ($0.59) per share, valuing the deal at Ksh27.8 billion ($215.7 million). 

The revised offer outpaces Amsons' bid of Ksh65 ($0.50) per share, worth Ksh23.6 billion ($183.1 million), and surpasses Savannah’s earlier Ksh70 ($0.54) per share offer. The higher bid underscores Savannah’s push to take control of Bamburi, setting up a competitive contest.

Bamburi Cement's sustainability push, Patel's stake

Bamburi Cement, renowned for its pioneering role in sustainable construction, operates Sub-Saharan Africa’s largest cement plant located in Mombasa. The company’s focus on innovative building solutions and environmental sustainability has positioned it as a key player in the region’s construction industry.

Kenyan businessman Baloobhai Patel, through his firm Aksaya Investment, holds a 4.12 percent stake in the company. Patel, a key figure in Kenya’s economy, also has significant stakes in Sanlam and Carbacid.

Amsons Group drops Bamburi deal, clearing path for Savannah Clinker

Amsons Group initially agreed to pay a Ksh682.7 million ($5.31 million) breakup fee if it withdrew from its planned acquisition of Bamburi Cement, barring legal issues. The fee, 3 percent of the total offer, would be distributed pro-rata to shareholders accepting the buyout offer. If the deal isn't closed by Nov. 28, 2025, and no legal barriers arise, the payment will be due.

Amsons' $183.2 million bid, made through its private investment arm, aimed to expand its presence in East Africa’s cement market. However, its decision to release Holcim from the sale agreement has opened the door for Savannah Clinker, which could use the opportunity to boost its regional position.

With the deadline nearing, focus shifts to Savannah Clinker’s revised bid, which could reshape Bamburi’s ownership and alter the East African cement landscape. Amsons' exit signals a strategic shift, giving Savannah a chance to control one of the region's top cement producers.