The Competition Authority of Kenya has granted unconditional approval for the acquisition of Mace Consult Holding Limited by Consult Bidco Ltd. This decisive regulatory green light was based on the Authority’s comprehensive assessment, which concluded that the transaction is not anticipated to result in a substantial lessening of competition within Kenya’s project management consultancy sector.
The transaction involves Consult Bidco acquiring the entire issued share capital of Mace Consult Holdings. This move is characterized primarily as a financial investment. It is anticipated that the collaboration of capital and strategic backing from the Goldman Sachs Group (NYSE: GS) will generate significant generational efficiencies for Mace’s Consult Kenyan operations. This vision is for the local entity to continue operating as a standalone business, but with enhanced resources that will enable it to better serve its clients and accelerate its growth trajectory in the region.
Consult Bidco, the acquiring entity, is a special purpose vehicle, a company newly incorporated specifically to facilitate this acquisition. Its ultimate controlling shareholder, GS Group Inc, a global financial powerhouse, listed on the New York Stock Exchange. The parent company, GS Group is renowned for its extensive operations in global investment banking, securities and investment management providing a vast suite of financial services worldwide.
About Mace Consult Holdings
The target of this investment, Mace Consult Holdings, is incorporated in New Jersey USA and operates in the Kenyan market through its controlled subsidiaries, Mace Management Services Ltd and Mace YMR Ltd Partnership. These entities specialize in delivering project and cost management consultancy for a diverse portfolio of construction and infrastructure projects.
This approval takes place within the context of a highly fragmented market for project management consultancy services in Kenya. The landscape is populated by numerous small and medium-sized enterprises (SMEs) that typically compete for private sector clients, while a few multinational firms consistently secure major public sector contracts. During the merger analysis, the Competition Authority evaluated the potential impact of the transaction on this dynamic. The assessment determined that the change in ownership would not materially alter the market’s structure or concentration levels, nor would it raise any unhealthy competition concerns.
Furthermore, from a public interest perspective, the transaction was given a clean bill of health. A key consideration in such approvals is the potential impact on employment. In this instance, the Competition Authority confirmed that the acquisition will not lead to any job losses, as there are no anticipated redundancies for the employees of Mace’s Kenyan subsidiaries. Consequently, with the regulatory hurdles cleared, the path is now clear for the finalization of this corporate union, which aims to bolster Mace Consult position in the Kenyan market under its new ownership.
