Saudi-led Consortium Completes R23bn Takeover of Barloworld, Delisting Confirmed

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The long-running takeover of Barloworld has officially been concluded, with a Saudi Arabia–led consortium finalising its compulsory acquisition of the remaining shares and confirming the company’s exit from the JSE and A2X later this month.

Barloworld, South Africa’s only authorised distributor of Caterpillar construction equipment in Southern Africa, has been acquired by Newco, a special-purpose vehicle comprising Gulf Falcon Holding, a subsidiary of Saudi Arabia’s Zahid Group, and Entsha, a company linked to Barloworld CEO Dominic Sewela.

In November 2025, Barloworld informed shareholders that Newco’s R23 billion standby offer had closed after receiving acceptances from 97.6 percent of shareholders. This paved the way for Newco to invoke section 123 of the Companies Act, triggering a squeeze-out of the remaining minority shareholders at R120 per ordinary share.

The compulsory acquisition was successfully implemented on 22 January 2026, after Newco paid the required consideration for the outstanding shares. Barloworld has now confirmed that its ordinary shares will be delisted from the Johannesburg Stock Exchange and A2X on Tuesday, 27 January.

As previously reported by SA Trucker in mid-2025, the transaction followed a failed scheme of arrangement, which did not secure sufficient shareholder approval and resulted in the standby offer being triggered. The deal also survived regulatory scrutiny, with the Competition Commission recommending approval subject to public interest conditions, including a post-delisting 13.5 percent broad-based black economic empowerment transaction.

The takeover was not without controversy. Some pre-consortium shareholders raised concerns about governance and Sewela’s involvement in the buyout. The offer price was later increased after a Takeover Regulation Panel ruling required an additional R225 million due to changes between the original scheme consideration and the standby offer.

With the delisting now imminent, Barloworld begins a new chapter as a privately held company, bringing to an end its long tenure on South Africa’s public markets.