The Zahid Group from Saudi Arabia has finalised its R23 billion acquisition of Barloworld, completing a landmark deal that will see the South African industrial group delist from the JSE and A2X and transition to private ownership under a Middle Eastern-led consortium. The acquisition was executed through Newco, a consortium comprising Gulf Falcon Holding, a subsidiary of Zahid Group, and Entsha, an investment vehicle linked to Barloworld Chief Executive Officer Dominic Sewela. Barloworld is the exclusive distributor of Caterpillar construction equipment in Southern Africa.
In November 2025, Barloworld informed shareholders that Newco’s standby offer had closed after securing acceptances representing 97.6% of the standby offer shares. Newco subsequently exercised its right under section 123 of the Companies Act to compulsorily acquire the remaining shares at R120 per share through a squeeze-out process. The compulsory acquisition was completed on 22 January 2026, following payment of the required consideration. Barloworld has since confirmed that its ordinary shares will be delisted from the JSE and A2X on Tuesday, 27 January.
The transaction was not without controversy. The original scheme of arrangement failed to secure sufficient shareholder approval, triggering the standby offer mechanism. The deal also drew criticism from some shareholders over Sewela’s participation in the consortium. In addition, the Takeover Regulation Panel ruled that an extra R225 million be paid after changes were made to the scheme consideration and standby offer, resulting in an upward adjustment to the total transaction value.
Barloworld operates across Southern Africa, with operations in Botswana, Namibia, Zambia and Mozambique. The delisting marks the end of the company’s public market presence and signals a new phase under private ownership led by Middle Eastern capital.
