Tanzania's Amsons Group $180 million Acquisition of Kenya's Bamburi Cement.

Amsons Group, a Tanzania-based family-owned conglomerate, has proposed a significant $180 million acquisition bid for the entire stake of Kenya-based Bamburi Cement through its Kenyan subsidiary and investment vehicle, Amsons Industries Ltd.

Why does it matter:

This move lies in the fact that it is regarded as one of the major mergers and acquisitions in East Africa, establishing Amsons as a key player in the cement sector of the region. Notably, the company has recently acquired Tanzania's Mbeya Cement facility from Holcim and Uganda's Hima Cement for $84 million in the first quarter of this year. Furthermore, Amsons already possesses a cutting-edge concrete plant with extensive logistics and fuel operations in Tanzania, the DRC, Mozambique, and Zambia.

The bottom line:

This acquisition bid is poised to position the Amson Group as a leading player in the regional cement market. With popular brands such as Camel Cement and Tembo Cement under its umbrella, the acquisition would empower the Amson Group to capitalise on economies of scale and vertical integration, facilitating its objective of expanding cement manufacturing output with a capacity of 6,000MT/day and penetrating various regional markets.