- AMSONS Group granted regulatory go forward to accumulate Bamburi cement.
- The family-owned enterprise has partnered with KCB Funding Financial institution as its transaction adviser.
- Amson made its preliminary supply when Bamburi Cement’s shares had been buying and selling at Sh45, however the inventory has since risen, buying and selling at Sh66 on Thursday afternoon.
Tanzanian enterprise conglomerate AMSONS Group has acquired regulatory approval from the COMESA Competitors Fee for its proposed acquisition of as much as 100 per cent of Bamburi Cement.
The transfer coming at a time that Kenya’s Savannah Clinker Restricted has already raised its bid for the acquisition of Bamburi Cement, regardless that its supply already exceeds Tanzania Amsoms’ competing supply.
In an announcement, the COMESA Competitors Fee confirmed that the proposed acquisition falls inside its ambit and doesn’t pose a contest threat inside the frequent market.
“It’s unlikely that the proposed merger will result in the creation of a dominant place that will allow the events to interact in unilateral conduct available in the market,” COMESA Competitors Fee said in its determination offering its approval to the proposed acquisition.
The Committee Liable for Preliminary Determinations (CID) additional famous that the merger wouldn’t hinder competitors within the Widespread Market because it aligns with the general public curiosity and can as a substitute enhance commerce amongst COMESA Member states.
Learn additionally: Bamburi Cement targets 40 per cent minimize in carbon emissions by 2030
Amson Group, had in August gained the backing of main shareholders in its push to accumulate Kenya’s Bamburi Cement at a price of $180 million (about Sh23.3 billion).
“The CID decided that the merger is just not more likely to considerably stop or reduce competitors within the Widespread Market or a considerable a part of it, nor will it’s opposite to the general public curiosity. The CID additional decided that the transaction is unlikely to negatively have an effect on commerce between Member States.”
In July, AMSONS Group, Tanzania’s main manufacturing and power big, issued a binding supply to accumulate as much as a one hundred pc stake in Bamburi Cement by way of its Kenyan subsidiary and funding car, AMSONS Industries (Okay) Ltd.
AMSONS Group Granted Regulatory go Forward to Purchase Bamburi
Talking as he welcomed the COMESA Competitors Fee’s approval, AMSON’S Group CEO Edha Nahdi stated the transaction is a part of the Group’s technique to broaden its footprint to the Kenyan market and commerce throughout East Africa.
“The approval is a major enhance to our supply as we proceed to interact traders of Bamburi Cement and stay assured that our acquisition bid can be profitable because it presents a win-win situation for the traders and our two international locations,” stated Nahdi.
The family-owned enterprise has partnered with KCB Funding Financial institution as its transaction adviser.
Learn additionally: Kenya’s Savannah Clinker counters Tanzania’s Amsons with $197 million Bamburi bid
Amsons Group buyout of Bamburi Cement
The competitors to take over the cement maker has seen its share worth develop in current months on the Nairobi Securities Trade.
Amson made its preliminary supply when Bamburi Cement’s shares had been buying and selling at Sh45, however the inventory has since risen, buying and selling at Sh66 on Thursday afternoon.
The 2 affords for the cement maker have dragged the deal. Bamburi Cement is majority-owned by Holcim by way of two funding automobiles—Fincem Holding and one other undisclosed entity.
There was confusion final month after Holcim, the Swiss majority shareholder in Bamburi Cement, suspended a sale settlement with Tanzanian agency Amsons Group for its stake within the Kenyan cement firm.
The 2 corporations initially signed an irrevocable sale settlement in July, successfully barring third-party bids.
“On October 2, 2024, Amsons mutually agreed with Fincem and Kencem to terminate the irrevocable endeavor entered into on July 10, 2024,” Amsons said in supply letters, clarifying that Bamburi shareholders at the moment are free to think about different affords.
Savannah Clinker, based by Ndeta in 2019, focuses on cement manufacturing and is growing a limestone and clinker processing plant in Kitui County. In the meantime, Amsons Group has various pursuits in cement, gasoline, and transport.
Holcim’s Bamburi stake is held by way of Fincem Holding Restricted and Kencem Holding Restricted with about 58.3 p.c shares between every.
