Barloworld, the long‑standing JSE‑listed industrial group and Southern Africa’s exclusive distributor of Caterpillar construction and mining equipment, has officially been taken over by a consortium led by Saudi Arabia’s Zahid Group. The transaction marks a major turning point in the company’s history, with Barloworld now preparing to delist from both the Johannesburg Stock Exchange (JSE) and A2X Markets.
The acquisition was executed through Newco, a special‑purpose entity jointly formed by Gulf Falcon Holding, a subsidiary of Zahid Group and Entsha, an investment company associated with Barloworld CEO Dominic Sewela. This partnership structure, while central to sealing the deal, later attracted criticism from certain pre‑consortium shareholders who expressed concern over Sewela’s dual role as both CEO and participant in the buying consortium.
In November 2025, Barloworld notified shareholders that Newco’s R23‑billion Standby Offer had closed successfully. An overwhelming 97.6% of Standby Offer Shares were tendered, giving the consortium near‑total control of the company. Building on this majority support, Newco proceeded to invoke Section 123 of the Companies Act, a mechanism allowing for the compulsory acquisition (squeeze‑out) of remaining minority shareholders. The squeeze‑out offered R120 per ordinary share, ensuring uniform exit terms for all remaining investors.
This compulsory acquisition was finalized on 22 January 2026, after Newco paid the full consideration required for the outstanding shares. With all regulatory and procedural steps complete, Barloworld has confirmed that its ordinary shares will be officially delisted from both the JSE and A2X on Tuesday, 27 January 2026. The delisting marks the end of Barloworld’s decades‑long presence on the South African public markets.
The road to this takeover was not without complications. The initial Scheme of Arrangement, the first formal attempt to facilitate the acquisition, failed to secure the necessary shareholder approval. This setback triggered the activation of the Standby Offer, which subsequently became the main vehicle for the transaction. Further complexity emerged when the Takeover Regulation Panel ruled that the offer consideration needed adjustment, resulting in an additional R225 million being added to the acquisition cost to account for changes in both the scheme terms and the standby offer structure.
Despite these challenges, the acquisition has now been completed in full. With its transition into private ownership under the Zahid‑led consortium, Barloworld enters a new strategic chapter, one likely to reshape its operational landscape, governance structure, and long‑term role in the regional industrial sector.
