![Tanzania's Amsons Group Offers $180 Million for Bamburi Cement Acquisition](https://metropoltv.co.ke/wp-content/uploads/2024/07/WhatsApp-Image-2024-07-12-at-52734-PM-780x470.jpeg)
Tanzanian conglomerate Amsons Group has set a new benchmark with a historic $180 million (Ksh.23.32 billion) binding offer to acquire full ownership of Bamburi Cement, valuing the prominent cement manufacturer at Ksh.65 per share.
Founded in 2006, Amsons Group is a family-owned business conglomerate based in Tanzania, boasting an annual turnover exceeding $1 billion.
While its primary business focuses on bulk oil and petroleum importation, the group also holds significant interests in cement manufacturing, wheat flour milling, LPG, and transportation.
Bamburi Cement, majority owned (58%) by Swiss-based Holcim (formerly LaFarge Holcim), has its remaining shares listed on the Nairobi Securities Exchange (NSE).
“We are excited about expanding our investments in Kenya and specifically in Bamburi,” remarked Edha Nahdi, Managing Director of Amsons Group. “Our bid to acquire Bamburi shares aligns with our strategic growth plans and marks our formal entry into the Kenyan market, where we intend to broaden our investments across various sectors in the near future.”
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This transaction isn’t the first collaboration between Holcim and Amsons Group. Previously, Holcim agreed to sell its 65% stake in Mbeya Cement Company Ltd in Tanzania to Amsons Group last November.
Holcim further divested its interest in Uganda’s Hima Cement, selling Bamburi Cement’s 70% stake to Sarrai Group for $120 million.
“This sale of our stake in Bamburi Cement supports Holcim’s strategy of reinforcing our leadership in core markets as a global leader in sustainable building solutions,” said Martin Kriegner, Regional Head of Asia, Middle East & Africa at Holcim.
Holcim’s strategic withdrawal from East African markets raises questions about its broader corporate strategy.
Following its $60 billion merger with Lafarge in 2014, Holcim acquired Lafarge’s 58.6% stake in Bamburi through subsidiaries Fincem Holding Ltd and Kencem Ltd.
In Tanzania, Amsons Group operates cement manufacturing under the brands “Camel Cement” and “Tembo Cement,” with a manufacturing capacity of 6,000 metric tons per day.
The company prides itself on creating employment opportunities, directly employing 1,700 individuals and indirectly supporting 2,000 more across its operations in Tanzania, Congo, Mozambique, and Zambia.
Amsons Group’s offer represents a substantial 44% premium over Bamburi’s closing share price on July 10th, 2024, signaling a significant move in the East African cement industry landscape.