The Competition Authority of Kenya (CAK) has approved the acquisition of Mace Consult Holdings by Consult Bidco Ltd, after finding that the deal is unlikely to reduce competition in Kenya’s market.
In a statement on November 18, the Competition Authority of Kenya stated that the transaction will see Consult Bidco acquire the entire share capital of Mace Consult Holdings as a financial investment.
The Authority noted that the acquisition is expected to generate operational efficiencies for Mace, allowing it to serve clients more effectively as a standalone business and accelerate its growth.
“The Competition Authority of Kenya has approved the proposed acquisition of control of Mace Consult Holding Limited by Consult Bidco Ltd unconditionally, based on the finding that 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 part of the statement.
Acquisition of Mace Consult Holding
The merger qualifies under the Competition Act, which defines a merger as the acquisition of control over another business, either directly or indirectly.
As the combined turnover of the two companies exceeds Ksh 1 billion, the Competition Authority of Kenya conducted a comprehensive review in line with the Competition (General) Rules, 2019.
In its analysis, the Authority identified the relevant product market as project management consultancy services and the geographical market as national, since Mace’s clients are spread across Kenya.
CAK also considered the public interest, including potential impacts on employment, SMEs, particular industries, and the ability of national industries to compete internationally.
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According to the parties, the transaction is not expected to raise public interest concerns and is not anticipated to result in job losses or redundancies.
CAK concluded that post-merger, the combined entity’s market share will not change because Consult Bidco does not operate in the same business as Mace.
The Authority, therefore, found that the transaction is unlikely to substantially prevent or lessen competition or alter the market structure for project management consultancy services in Kenya.
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About Consult Bidco Ltd
Consult Bidco Ltd (Consult Bidco), the company acquiring Mace Consult Holdings, was incorporated specifically for this transaction.
The firm is ultimately controlled by GS Group Inc., a global investment company listed on the New York Stock Exchange.
GS Group offers a comprehensive range of financial services globally, encompassing investment banking, securities, and investment management.
Mace Consult Holding Limited
Mace Consult Holding Limited (Mace Consult Holdings), the target company, is incorporated in New Jersey, USA.
In Kenya, it owns Mace Management Services Limited and Mace YMR Limited Liability Partnership, both of which provide consultancy services in project and cost management for construction and infrastructure projects.
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