Amsons' bid for Bamburi Cement gets Comesa approval

Amsons Group, the Tanzanian business conglomerate, has received regulatory approval from Common Market for Eastern and Southern Africa’s (Comesa) Competition Commission for its proposed acquisition of up to 100 per cent of Bamburi Cement. 

The commission confirmed Thursday the proposed acquisition falls within its ambit and does not pose a competition risk within the common market. 

“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,” said the commission in a statement. 

The Committee Responsible for Initial Determinations (CID) further noted that the merger would not hinder competition in the Common Market as it aligns with the public interest and would improve trade among Comesa member states.

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“The CID determined that the merger is not likely to substantially prevent or lessen competition in the Common Market or a substantial part of it, nor will it be contrary to the public interest. The CID further determined that the transaction is unlikely to negatively affect trade between Member States,” the commission added. 

In July, the Amsons Group - Tanzania’s leading manufacturing and energy giant - issued a binding offer to acquire up to a 100 per cent stake in Kenya’s Bamburi Cement through its Kenyan subsidiary and investment vehicle, Amsons Industries (K) Ltd. 

Savannah Clinker, owned by businessman Benson Ndeta, recently upped its offer to Bamburi Cement’s shareholders by about 9.4 per cent to Sh76.55 per share, which is higher than the Sh70 per share the firm had offered in its first bid in August as it seeks to outdo Amsons Group.

Amsons has offered to buy Bamburi at Sh65 per share or Sh23.59 billion for the entire stake.

Speaking as he welcomed the Comesa Competition Commission’s approval, Amsons Group CEO Edha Nahdi said the transaction is part of the Group’s strategy to  expand its footprint to the Kenyan market and trade across East Africa. 

“The approval is a significant boost to our offer as we continue to engage investors of Bamburi Cement and remain confident that our acquisition bid will be successful as it presents a win-win scenario for the investors and our two countries,” Mr Nahdi said. 

The Group has partnered with KCB Investment Bank as its transaction adviser, underscoring its commitment and determination to engage professionally with the Kenyan market.