Competition Authority of Kenya (CAK) Director General David Kibet. Photo/X/Courtesy.
The Competition Authority of Kenya (CAK) has approved the proposed acquisition of sole control of Mace Consult Holding Limited by Consult Bidco Limited, saying the deal is unlikely to weaken competition in Kenya’s project management consultancy market.
In the notice, the Authority said it had given the approval unconditionally after determining that the merger would not raise competition concerns or negatively affect public interest.
“The transaction is unlikely to lead to a substantial prevention or lessening of competition in the market for provision of project management consultancy in Kenya, nor elicit negative public interest concerns,”read the notice.
Consult Bidco Limited, the acquiring entity, is a newly incorporated company ultimately controlled by GS Group Inc., which is listed on the New York Stock Exchange. The firm’s parent company operates in investment banking, securities and broader financial services.
The target firm, Mace Consult Holdings, is incorporated in New Jersey, USA. In Kenya, it controls Mace Management Services Limited and Mace YMR Limited Liability Partnership, both active in consultancy services for project and cost management in construction and infrastructure projects.
CAK noted that the transaction involves the purchase of the entire issued share capital of Mace Consult Holdings, allowing Consult Bidco to assume full control.
The regulator said the takeover is expected to generate operational efficiencies that will enable the business to better serve clients and support its growth as a standalone entity.
Under the Competition Act, mergers involving firms with assets or turnover exceeding KSh1 billion must be notified to CAK for full review. The two parties met this threshold.
CAK’s analysis also established that the relevant market project management consultancy is highly fragmented, with multinationals and numerous SMEs serving both private sector and donor-funded infrastructure projects.
The market is also increasingly influenced by foreign firms entering through joint ventures with local partners.
Because the acquiring firm does not currently operate in the same market, the regulator found that the transaction would not alter the structure or competitive dynamics of the sector.
“The market share of the merged entity will not change since the acquirer does not engage in similar business with the target,”
the Authority stated.
