AMSONS Group, the Tanzanian business conglomerate, has received regulatory approval from the COMESA Competition Commission for its proposed acquisition of up to 100 percent of Bamburi Cement Plc.
The COMESA Competition Commission confirmed that 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,” the COMESA Competition Commission stated in its decision providing its approval to the proposed acquisition.
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 will instead improve trade among COMESA Member states.
Savannah Clinker increases offer for Bamburi Cement to Sh. 27.78 billion
“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.”
In July, AMSONS Group, Tanzania’s leading manufacturing and energy giant, issued a binding offer to acquire up to a 100% stake in Kenya’s Bamburi Cement PLC (Bamburi) (NSE: BAMB) through its Kenyan subsidiary and investment vehicle, AMSONS Industries (K) Ltd.
Speaking as he welcomed the COMESA Competition Commission’s approval, AMSON’S 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 Edha 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.
AMSONS Group is a family-owned business founded in 2006 in Tanzania. Its primary business operations historically involved bulk oil and petroleum products importation under the Camel Oil Tanzania retail brand.
The group has steadily diversified and grown its portfolio in the manufacturing sector with a 6,000MT/day cement manufacturing capability, including through the recently acquired Mbeya Cement facility. In addition, the group has a 500MT/day Wheat Flour Milling Plant, a state-of-the-art premix Concrete plant, Inland Container Depots (ICDs), Fuel and lubricants, Liquefied Petroleum Gas (LPG), and a transportation fleet across Zambia, Malawi, Mozambique, Democratic Republic of Congo, Burundi and Tanzania.
