In a landmark transaction for the Middle East and Africa region, Saudi Arabia’s Zahid Group has finalized the complete acquisition of South African industrial conglomerate Barloworld for approximately $1.3 billion (23 billion Rand). The deal marks a historic shift for Barloworld, concluding its 123-year tenure as a publicly listed company on the Johannesburg Stock Exchange.
The acquisition, one of the most significant cross-border deals between the two regions in recent years, transitions Barloworld into a fully private entity under the ownership of the Saudi group.
A Landmark Middle East-Africa Transaction
The deal was executed through Zahid Group’s investment arm, Gulf Falcon Holding. The path to full ownership was cleared after the holding company successfully secured over 97% of Barloworld’s shares, triggering a clause under South African law that permits a compulsory acquisition of the remaining stake.
Barloworld is a major player across industrial equipment, infrastructure, energy, and logistics sectors and serves as the exclusive distributor for American machinery giant Caterpillar in South Africa. This acquisition represents a strategic expansion for Zahid Group, deepening its footprint in key industrial sectors across the African continent.
Navigating Regulatory Scrutiny
The high-profile transaction underwent a period of detailed regulatory examination. This included voluntary investigations concerning Barloworld’s adherence to stringent US export controls.
Following a thorough review process that concluded without identifying any sanctions violations, the deal received the necessary green light from all relevant regulatory bodies, allowing the acquisition to proceed to its successful completion.
Operational Continuity and Strategic Integration
Under the terms of the agreement, Barloworld’s existing management team will remain in place, ensuring leadership continuity. The company is also set to maintain its local identity and operational independence post-acquisition.
Zahid Group will gain representation on Barloworld’s board of directors, enabling strategic alignment between the two entities. The deal also includes forward-looking commitments to foster talent, with plans to establish joint skills development and training programs for youth in both Saudi Arabia and South Africa.
About Zahid Group
Zahid Group is a Saudi Arabia-based privately held organization representing a diverse range of companies, strategic partnerships, and world-renowned brands. Headquartered in Jeddah, its activities span sectors including construction machinery, energy and power, oil and gas, agriculture, mobility solutions, and mining.
About Barloworld
Barloworld is an industrial processing, distribution, and services company with a primary focus on Industrial Equipment & Services. It is a longtime dealer for Caterpillar earthmoving machines and power systems across Southern Africa and Russia.
Source: Jawlah
