Standard Bank, Africa’s largest bank by assets, has partnered with a newly formed consortium, NewCo, to enable the acquisition of industrial powerhouse Barloworld in a landmark transaction valued at approximately R23 billion (US$1.3 billion).
In this transformative deal, Standard Bank assumed multiple critical roles, serving as joint financial advisor, sole mandated lead arranger, underwriter, bookrunner, and sole guarantee provider. The bank also delivered an innovative acquisition financing structure that covered the full purchase consideration, underscoring its ability to execute complex, large-scale transactions.
This acquisition brings together long-term, committed investors and results in the creation of a majority black-owned South African enterprise. Beyond its immediate impact, the transaction marks the beginning of a new era of entrepreneurship supported by private capital inflows from the Gulf Cooperation Council (GCC) region.
NewCo, a special-purpose vehicle established for the acquisition, is jointly owned by Entsha Proprietary Limited—an entity controlled by the Sewela family—and Gulf Falcon Holding, a subsidiary of Saudi Arabia’s Zahid Group. The consortium’s offer of R120 per share for all Barloworld ordinary shares reflects the full equity value of approximately R23 billion.
Founded in 1902, Barloworld is a South African multinational corporation specializing in industrial processing, distribution, and services. Its operations center on two key sectors: industrial equipment & services and consumer industries.
Luvuyo Masinda, Chief Executive of Standard Bank Corporate & Investment Banking, commented:
We are immensely proud to have played a key role in delivering this landmark deal. Our deep understanding of client needs, the strength of our balance sheet, and advisory franchise—as well as our 25-year connectivity into the GCC—enabled us to support NewCo in executing a transaction of this scale and complexity. Without our market reach and integrated capabilities, closing a deal of this nature would not have been possible.
This acquisition represents a strong vote of confidence in South Africa and the broader African region, with ripple effects across Southern Africa. It is also the largest private-sector cross-border acquisition by a Saudi entity into South Africa, signaling growing international investor interest in the region.
Following approval from the Takeover Regulation Panel and issuance of the compliance certificate, payment processes have commenced to finalize the transaction. Barloworld will retain its name and remain headquartered in South Africa.
