A Saudi-led consortium has completed the $1.3 billion acquisition of Barloworld, ending the 123-year-old South African industrial group’s long run as a publicly listed company. The takeover, led by Saudi Arabia’s Zahid Group in partnership with local investors, values the company at about 23 billion rand and marks one of the most significant Gulf investments into South Africa’s industrial sector, as reported by Business Insider Africa.
The deal will see Barloworld delisted from the Johannesburg Stock Exchange, with the company transitioning to private ownership after securing the required shareholder and regulatory approvals. Zahid Group, which already had a long-standing relationship with Barloworld through Caterpillar dealerships, said the acquisition strengthens its footprint in African construction, mining, and industrial services markets.
Barloworld is best known as the exclusive distributor of Caterpillar equipment across Southern Africa, serving mining, infrastructure, energy, and logistics sectors. The new owners said the company will retain its South African identity, with existing management continuing to run operations, while the Saudi group provides long-term capital and strategic support.
Businesstech says the transaction underscores rising Middle Eastern investment interest in African industrial assets, as Gulf firms seek growth opportunities beyond their home markets. The deal is also seen as a vote of confidence in Barloworld’s underlying business and Africa’s long-term infrastructure and mining prospects, as highlighted in market commentary cited by business insider Africa.
