Saudi Arabia’s Zahid Group has completed the acquisition of South African industrial conglomerate Barloworld in a R23 billion (US$1.3 billion) transaction, taking the 123-year-old company private and marking one of the most significant Middle East–Africa corporate takeovers in recent years.
The takeover was executed by a consortium led by Zahid Group through its subsidiary Gulf Falcon Holding and was finalised in January 2026 after the group acquired the remaining outstanding shares via a compulsory squeeze-out. Barloworld’s ordinary shares are scheduled to be delisted from the Johannesburg Stock Exchange and A2X on January 27, ending more than a century as a publicly traded company in South Africa.
Barloworld is a major player in Africa’s industrial and equipment markets and is best known as the exclusive distributor of Caterpillar construction and mining equipment across Southern Africa. Its operations span sectors closely linked to infrastructure development, mining, energy and logistics throughout the region.
The deal followed months of regulatory and legal scrutiny after Barloworld disclosed that it had submitted a voluntary self-disclosure to the United States Commerce Department’s Bureau of Industry and Security over potential export control issues. The review, which delayed completion of the transaction, concluded in September 2025. While no violations of U.S. sanctions were identified, the review noted apparent breaches of export control regulations, which Barloworld said it was addressing.
A separate legal assessment by law firm Dentons determined that the issues identified did not amount to a breach of U.S. sanctions within the applicable statute of limitations, clearing a key obstacle to the takeover.
With regulatory uncertainty resolved, the consortium proceeded with a standby offer of R120 per share. By November 2025, 97.6% of shareholders had accepted the offer, enabling the buyers to invoke Section 123 of South Africa’s Companies Act to compulsorily acquire the remaining shares.
Zahid Group’s full buyout builds on its earlier minority stake in Barloworld and reflects a broader trend of Gulf investment targeting African industrial, energy and infrastructure assets. Founded in Jeddah in 1943, Zahid Group is a family-owned conglomerate with interests spanning construction, energy, manufacturing, finance, travel, hospitality and oil services across more than 30 countries.
The group’s long-standing relationship with Caterpillar closely aligns with Barloworld’s core business. Zahid Group has served as Caterpillar’s authorised dealer in Saudi Arabia for more than 75 years, while Barloworld has represented the U.S. equipment maker in Southern Africa for nearly a century.
Under the new ownership structure, Barloworld’s existing management team will continue to run the business, with Zahid Group taking board representation. The company has said Barloworld will retain its South African identity and operational independence. The transaction also includes commitments to skills development and youth training, including a Saudi–South Africa upskilling programme aligned with Saudi Arabia’s Vision 2030 agenda.
The acquisition underscores continued foreign investor interest in South Africa’s strategic industrial assets despite domestic economic pressures, while highlighting Zahid Group’s long-term bet on Africa’s infrastructure, mining and industrial growth as Gulf capital deepens its footprint across the continent.
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