Amsons Group, a leading pan-African manufacturing and energy conglomerate, has officially closed its acquisition of Bamburi Cement Plc, marking a significant milestone in the regional business landscape. The deal, valued at US$180 million, has received overwhelming support from Bamburi Cement shareholders, with 96.54% of them accepting the takeover offer. This strategic move positions Amsons Group to expand its footprint in Kenya and further strengthens its market presence in East Africa.
In a regulatory notice issued by Amsons Group, the acquisition was finalized through its Kenyan subsidiary, Amsons Industries (K) Ltd. The deal represents a pivotal step for Amsons as it seeks to diversify its operations, adding specialized cement manufacturing to its already broad portfolio. Edha Nahdi, the Group’s Managing Director, expressed confidence in the swift and efficient closure of the deal, highlighting the mutual benefits that both companies expect to gain through the integration.
“This acquisition aligns with our strategy to expand into specialized cement manufacturing and complements our broader growth objectives,” Nahdi said in the statement. “With Bamburi Cement now part of the Amsons family, we anticipate creating significant mutual benefits through this integration.” He further emphasized the group’s ambitions to diversify into additional sectors, including energy, food manufacturing, warehousing, and logistics.
The acquisition of Bamburi Cement is more than just a corporate move; it also represents a landmark event in the region’s economic landscape. This buyout is the first major foreign direct investment by a Tanzanian firm into Kenya’s listed market, setting the stage for further cross-border investments between Kenyan and Tanzanian businesses. Experts suggest that this could spark greater collaboration and investment between the two nations, fostering economic integration within East Africa.
Amsons Group, founded in 2006 in Tanzania, has grown rapidly to become a diversified conglomerate with an annual turnover exceeding US$1 billion. The group’s operations span various sectors, including cement manufacturing, fuel distribution, food processing, and logistics. Its cement division, which now includes Bamburi Cement, has a production capacity of 6,000 metric tons per day, a significant boost to the company’s cement production capabilities. The acquisition also strengthens Amsons Group’s cement operations with the recent addition of the Mbeya Cement facility in Tanzania.
Beyond cement, Amsons has a strong presence in the energy sector, with a wide range of products such as fuel and lubricants, Liquefied Petroleum Gas (LPG), and a transportation fleet. The company operates a state-of-the-art wheat flour milling plant with a capacity of 500 metric tons per day, a premix concrete plant, and inland container depots (ICDs). With such a diversified portfolio, Amsons is well-positioned to become a dominant player in the East African market, bringing innovation and sustainable growth to its various industries.
The acquisition of Bamburi Cement also marks Amsons Group’s formal entry into the Kenyan market, a country known for its strategic role in East Africa’s economic integration. Bamburi Cement, a major player in Kenya’s construction and infrastructure sectors, brings significant value to Amsons Group. The integration of Bamburi’s operations with Amsons’ existing resources and capabilities is expected to drive innovation in the cement industry while opening up new opportunities for both companies in Kenya and beyond.
Looking ahead, Amsons Group’s long-term vision is to expand its presence across multiple industries in East Africa, contributing to the region’s economic development and integration. The acquisition of Bamburi Cement is just the beginning of a broader strategy to capitalize on the growing demand for cement and related products in East Africa, further cementing the group’s position as a regional leader in manufacturing and energy.
As Amsons Group continues to integrate Bamburi Cement into its operations, stakeholders in both companies are optimistic about the future prospects. The deal is expected to create numerous benefits, including increased job opportunities, enhanced innovation, and improved access to cement products across East Africa. This acquisition reflects Amsons Group’s ambition to be at the forefront of East Africa’s economic transformation, driving growth and regional collaboration.
