A consortium led by Saudi Arabia’s Zahid Group has received the green light from South Africa’s Competition Tribunal to acquire Barloworld in a deal worth R23 billion. The transaction, which will see the industrial giant delist from the Johannesburg Stock Exchange (JSE), marks one of the biggest foreign takeovers in South Africa’s industrial sector in recent years.
Barloworld, a 122-year-old industrial company, is well known across Southern Africa as the exclusive distributor of Caterpillar construction equipment. The company also has operations in logistics, rental, and fleet management services. For decades, it has been regarded as one of the cornerstones of South Africa’s heavy industry, with a reputation built on supplying machinery to mining, construction, and infrastructure projects.
The acquisition will be executed through Newco, a newly formed company that brings together Gulf Falcon Holding, a subsidiary of Zahid Group, and Entsha, a local investment vehicle linked to Barloworld’s current chief executive officer, Dominic Sewela. The Zahid Group, based in Jeddah, is a diversified conglomerate with interests in construction, energy, manufacturing, oil and gas services, travel, hospitality, and financial services. Its involvement is expected to inject fresh capital and global expertise into Barloworld at a time when industrial firms face pressure from weak economic growth and competition in the African market.
The Competition Tribunal’s approval comes after a positive recommendation from the South African Competition Commission in June, which concluded that the transaction would not substantially lessen or prevent competition in the market. However, the approval was granted on the condition that public interest undertakings are implemented. These include a broad-based black economic empowerment (B-BBEE) structure that will ensure local participation in the company after it delists from the JSE.
Newco spokesperson Sydney Mhlarhi welcomed the ruling, describing it as a victory for South Africa and for Barloworld’s long-term survival. “We are delighted that the Tribunal has approved the transaction. We believe this deal secures Barloworld’s future, provides a premium for shareholders, and delivers economic and social benefits through broad-based empowerment,” Mhlarhi said.
The consortium has assured stakeholders that the deal is not just about foreign ownership but about ensuring Barloworld remains sustainable and competitive. According to industry analysts, the Zahid Group’s financial strength and diversified operations could help Barloworld expand its service offerings, upgrade its equipment base, and strengthen its footprint across Southern Africa and beyond.
Shareholders have been advised that the Standby Offer linked to the transaction remains open for acceptance. Those who have not yet tendered their shares still have time to participate. Under the offer, Barloworld shareholders will receive a net amount of R118.80 per share, following the interim dividend of R1.20 per share paid on June 24, 2025.
The timeline for the transaction outlines that the Longstop Date for fulfilling all conditions precedent is set for September 11, 2025. If any required regulatory approvals are still outstanding by that date, the Longstop Date will automatically extend by another three months. The final results of the Standby Offer will be announced on the Johannesburg Stock Exchange’s Stock Exchange News Service (SENS) and the African News Service (ANS) on the business day immediately after the closing date.
Barloworld’s sale to Zahid Group represents a significant shift for South Africa’s industrial landscape. While some stakeholders worry about foreign ownership of strategic companies, others see the deal as a much-needed injection of global capital into a sector struggling with limited domestic investment. For employees, suppliers, and customers, the key issue will be whether the new owners can safeguard jobs, maintain service standards, and ensure that South Africans continue to benefit from Barloworld’s operations.
If all approvals are met on schedule, the acquisition is expected to close before the end of September 2025. Observers say this deal highlights South Africa’s openness to global investment while also testing how public interest commitments such as empowerment and job protection are implemented in large cross-border acquisitions.
