Table of Contents
Key Points
- Amsons Group secures regulatory approval for its acquisition of up to 100% of Bamburi Cement, valued at Ksh23.59 billion ($182.4 million).
- The merger is deemed non-dominant, with COMESA affirming it won't harm regional competition or trade integration.
- Despite a rival bid from Savannah Clinker, Amsons remains optimistic about enhancing its position in East Africa’s construction sector.
Amsons Group, a Tanzanian family-owned conglomerate led by businessman Edha Nahdi, has secured regulatory approval for its proposed acquisition of up to 100 percent of Kenya’s Bamburi Cement.
The Common Market for Eastern and Southern Africa (COMESA) Competition Commission (CCC) confirmed Thursday that the transaction would not harm regional competition, marking a critical milestone in Amsons’ expansion strategy.
In a statement, the CCC emphasized that the merger would not result in market dominance, asserting that the deal is unlikely to enable unilateral conduct. “The proposed merger is not expected to substantially lessen competition within the Common Market,” the commission’s Committee for Initial Determinations noted. It also affirmed that the merger aligns with public interest goals and regional trade integration.
Amsons remains optimistic amid rival bid
Amsons’ CEO, Edha Nahdi, expressed confidence in the deal, welcoming the regulatory approval as a significant step forward. The group’s bid, valued at Ksh23.59 billion ($182.4 million), offers Ksh65 ($0.502) per Bamburi Cement share.
The transaction will bolster Amsons’ foothold in East Africa’s growing construction sector. "We are optimistic that our bid will create value for investors and strengthen trade ties between Kenya and Tanzania,” Nahdi said.
However, the path to acquisition remains competitive. Amsons faces a rival offer from Savannah Clinker, a company owned by Kenyan entrepreneur Benson Ndeta. Savannah Clinker recently raised its bid to Ksh76.55 ($0.59) per share, surpassing Amsons’ offer by nearly 9.4 percent.
Strategic expansion into construction materials
Amsons Group, founded in 2008, has grown from a bulk oil importer into a diversified conglomerate spanning fuel, LPG, transportation, cement, and real estate. Led by Nahdi, it has become a key player in East Africa’s infrastructure sector.
The company is pursuing the acquisition of Bamburi Cement, one of Sub-Saharan Africa’s largest cement producers. The deal would bolster Amsons' construction materials division and meet rising demand for infrastructure and housing in Kenya and the region.
Amsons has hired KCB Investment Bank as an adviser, highlighting its strategic approach. A successful acquisition would expand its production capacity and strengthen its foothold in the competitive construction materials market.
