Johannesburg-based engineering specialist PD Naidoo & Associates is to be acquired by global engineering, management and development consultant, Mott MacDonald.

Under a deal which will see the activities of the two companies in southern Africa come together to create an 800-person strong entity, the new Mott MacDonald PDNA business will provide a much extended, multi-sector capability for the entire sub-saharan region. The move – subject to approval by the Competition Commission of South Africa – is the culmination of a highly successful working relationship built over several years and supports both firms’ long-held growth aspirations in Africa. The deal is a major boost of confidence for foreign direct investment into South Africa and Africa.

Mott MacDonald and PDNA are currently working together on a range of major projects including the Eastern Cape Infrastructure Joint Venture, providing Transnet with engineering, procurement and construction management services covering port infrastructure upgrade projects at Port Elizabeth, Port of Ngqura and East London.

The proposed new practice will operate from 15 centres in South Africa, Botswana and Mozambique, providing multi-disciplinary design, implementation and management services across the property and infrastructure, transport, water, industrial, mining, energy, communications, health and education sectors.

Commenting on the development, Keith Howells, chairman of Mott MacDonald Group, said: “Bringing a company of PDNA’s standing into the Group will give our combined southern Africa operation the scope and scale to tackle a greater number of the more complex and strategic next-generation projects that our clients want to take forward to support the region’s social and economic success. And as both Mott MacDonald and PDNA are employee-owned companies, our combined workforce will share the same drive, commitment and motivation to achieve the best possible outcomes for our customers.”

Dempsey Naidoo, chairman of PD Naidoo & Associates, added: “This is a progression of the growth and global strategy for the PDNA Group. By uniting our complementary skills, experience, leading edge abilities and best practice we will create a powerful single-source, end-to-end service – backed by in-depth understanding and knowledge of southern Africa’s social, economic and technological environment. That’s not only an advantage for our clients – it will present much greater scope for all our staff to grow their careers and broaden their horizons within the global Mott MacDonald Group, which means we’ll attract and retain even more of the very best talent.”

Combining operations in southern Africa signals both companies’ long-term commitment to investing in local leadership, staff development, skills expansion and ownership, with the 53 owners of PDNA becoming shareholders in the Mott MacDonald Group. “We anticipate an initial combined BBBEE rating of level 3 which we will be working very hard to improve,” comments Dempsey Naidoo. “Both our companies subscribe strongly to the principles of BBBEE and we look forward to advancing our contribution to South Africa’s and Africa’s economic and social transformation – not least by using our combined strength to offer more bursaries, train more young engineers and ultimately create a stronger base of engineering expertise in South Africa, especially among Black communities.”