Tanzania’s Amsons Group has secured Comesa approval to acquire Bamburi Cement, as it competes with Savannah Clinker’s higher offer.
Amsons Gets Comesa Nod for Bamburi Takeover
Tanzanian industrial conglomerate Amsons Group has received regulatory approval from the Common Market for Eastern and Southern Africa (COMESA) Competition Commission to acquire up to 100% of Kenya’s Bamburi Cement Plc.
The approval, announced on November 14, 2024, confirms that the proposed acquisition does not pose a competition risk within the COMESA trading bloc.
“It is unlikely that the proposed merger will lead to the creation of a dominant position that would enable the parties to engage in unilateral conduct in the market,” the COMESA Commission stated.
The Committee Responsible for Initial Determinations (CID) further concluded that the deal is not contrary to public interest and will not adversely impact intra-regional trade.
A Two-Horse Race: Amsons vs Savannah Clinker
Amsons Group, through its Kenyan arm, Amsons Industries (K) Ltd, has tabled an offer to acquire Bamburi Cement at KSh65 per share, valuing the company at KSh23.59 billion.
However, Savannah Clinker Ltd, led by Kenyan businessman Benson Ndeta, recently upped its bid to KSh76.55 per share, escalating competition for control of one of Kenya’s top cement producers.
This development reflects growing investor interest in Kenya’s cement and construction sectors, key drivers of East Africa’s economic expansion.
Strategic Expansion by Amsons
Amsons Group operates across Tanzania’s manufacturing, energy, logistics, and retail sectors, and is seeking to scale its footprint in Kenya through Bamburi Cement.
“The approval is a significant boost to our offer,” said Edha Nahdi, CEO of Amsons Group.
“It presents a win-win scenario for investors and our two countries.”
The group has appointed KCB Investment Bank as its transaction adviser, underlining its professional approach to deal-making and cross-border investment.
What Lies Ahead for Kenya’s Cement Sector
If successful, the acquisition will deepen Amsons’ regional integration strategy and provide Bamburi Cement with access to capital and cross-border trade advantages.
However, with Savannah Clinker offering a higher per-share valuation, Bamburi shareholders must now decide which suitor offers the better long-term value.
The outcome of this acquisition contest will shape the East African cement landscape, influence market consolidation trends, and reflect the broader push for intra-African investment under the African Continental Free Trade Area (AfCFTA).
