AMSONS Group, the Tanzanian conglomerate, has been granted regulatory approval from the COMESA competition Commission to acquire Bamburi Cement Plc. Kenya’s largest cement company. The transaction will see AMSONS buy up to 100% of Bamburi Cement Plc.
In a statement on Tuesday, the COMESA Competition Commission said it had confirmed the acquisition falls do not harm competition 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,” stated the COMESA Competition Commission.
The Committee Responsible for Initial Determinations (CID) noted that the merger aligns with the public interest and will enhance trade among COMESA member states.
“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 statement read.
The approval follows AMSONS Group’s submission of a bid offer to buy up to 100% stake in Bamburi Cement PLC. The bid was submitted through AMSONS Industries (k) Ltd, the Group’s subsidiary and investment vehicle in Kenya.
The Group’s Chief Executive Officer Edha Nahdi hailed the approval and highlighted the transaction as a crucial part of the Group’s strategy to expand its footprint to the Kenyan market and the regional market.
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 investors and our two countries,” said Nahdi.
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