Zahid Group-led consortium wins approval to acquire Barloworld
Barloworld, a South African industrial giant operating in 16 countries worldwide, has received approval from the Competition Tribunal for its acquisition by a group of investors led by Saudi Arabia’s Zahid Group.
Founded in 1902, Barloworld has grown over its century-long history into a major holding company engaged in industrial equipment, services, and agriculture.
In 2024, Barloworld announced plans to be acquired by a consortium of investors, including Entsha (51%) and long-time shareholder Zahid Group (49%). This led to the creation of Newco, a special-purpose company established for the proposed merger and jointly controlled by Entsha and Falcon Holding.
On Monday, August 18, the company announced that the Competition Tribunal approved Newco’s acquisition of Barloworld for 23 billion rand (nearly $1.3 billion), subject to several public interest conditions. These include implementing a broad-based black economic empowerment (B-BBEE) structure following the company’s delisting.
Potential challenges of the deal
The Tribunal’s approval followed a positive recommendation by South Africa’s Competition Commission, announced on June 9, 2025, concluding the country’s competition review process.
“The parties continue working toward fulfilling the remaining conditions required for the transaction to become unconditional, including obtaining approvals from other jurisdictions,” Newco and Barloworld stated.
As a result of the deal, Barloworld shares will be delisted from the JSE and the company will become privately held. The consortium has offered shareholders 123.10 rand per Barloworld share, representing an 87% premium over the company’s 30-day average share price. This values the company at 23 billion rand.
However, some of Barloworld’s largest shareholders have opposed the deal, citing a conflict of interest involving CEO Dominic Sewela, who has ties to Entsha. In response, the buyer announced a possible backup repurchase plan for shareholders who have not yet tendered their shares.
As we wrote, Foreign investors return to South African bonds
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