Tanzania’s Amsons Group is set to acquire Kenya’s largest cement manufacturer, Bamburi Cement, in a deal valued at $182.89 million (Ksh23.59 billion).
This translates to a purchase price of Kshs 65.0 per share.
The offer represents a 44.44% premium over Bamburi’s share price on the Nairobi Securities Exchange (NSE).
Amsons, a conglomerate with interests in various sectors across East Africa, is seeking to expand its footprint in the region through this acquisition. The deal could potentially lead to Bamburi’s delisting from the NSE.
“We have great plans to deepen our investment in Kenya and Bamburi. It is part of our market expansion plan and will mark the formal entry into the Kenyan market. We plan to invest in other industries in the coming months,” said Edha Nahdi, Amsons managing director.
Bamburi Cement, with a 30% market share, is a significant player in Kenya’s cement industry. However, its parent company, Holcim, has been divesting its assets in the region.
In November 2023, Holcim sold its 65% stake in Tanzania’s Mbeya Cement to Amsons.
The acquisition comes after Bamburi exited the Ugandan market earlier this year. Amsons, with annual revenues exceeding $1 billion, is looking to deepen its investment in Kenya beyond the cement sector.
The deal is subject to regulatory approvals and the acceptance of Bamburi’s shareholders.
