Amsons Group, a prominent manufacturing and energy company based in Tanzania, is poised to acquire a substantial stake—potentially up to 100%—in Kenya’s Bamburi Cement. The proposed transaction, valued at approximately $180 million (Sh23.2 billion), marks one of the largest investment deals within the East African Community (EAC). This move underscores Amsons Group’s strategic intent to invest significantly in one of Kenya’s leading blue-chip companies listed on the Nairobi Securities Exchange (NSE).

Offer Details and Strategic Intent

Through its Kenyan subsidiary, Amsons Industries Limited, Amsons Group has issued a binding offer to acquire Bamburi Cement at Sh65 per share. This offer represents a premium above the current market price of Bamburi Cement shares on the NSE. The acquisition aims to strengthen Amsons Group’s footprint in the East African cement sector and supports regional economic growth and market integration initiatives.

Expansion Plans and Industry Footprint

Founded in 2006, Amsons Group has diversified its operations beyond bulk oil and petroleum products, expanding into manufacturing with a significant cement production capacity of 6,000 metric tons per day. The group also operates a state-of-the-art concrete plant, a wheat flour milling plant with a capacity of 500 metric tons per day, and extensive logistics and fuel operations across multiple African countries.

Strategic Partnerships and Market Integration

Amsons Group’s recent acquisition of Mbeya Cement in Tanzania from Holcim underscores its strategic capability and commitment to expanding its cement manufacturing capabilities. Holcim’s Regional Head of Asia, Middle East & Africa expressed confidence in Amsons Group as a capable partner to advance Bamburi Cement’s business in Kenya over the long term.

Market Entry and Future Prospects

The proposed acquisition of Bamburi Cement is part of Amsons Group’s broader strategy to expand its market presence in Kenya and across East Africa. The group plans further investments in Kenya in the near future, leveraging advanced manufacturing technologies to enhance operational efficiencies and build on Bamburi Cement’s established market position.

Conclusion

Amsons Group’s bid to acquire Bamburi Cement signals a significant milestone in its regional expansion strategy, aiming to capitalize on growth opportunities in the East African cement sector. The acquisition aligns with the group’s commitment to fostering economic development and integrating markets across the region, setting the stage for future industry advancements and partnerships.