End of an era: Barloworld delisted after R23bn Saudi acquisition
One of South Africa’s oldest industrial companies has officially exited the public markets following a R23bn acquisition by a Saudi-backed consortium, marking the end of Barloworld’s 124-year history as a listed entity.
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The takeover was led by Newco — a consortium anchored by Saudi Arabia’s Zahid Group through its subsidiary Gulf Falcon Holding — alongside Entsha, an investment vehicle linked to Barloworld chief executive officer, Dominic Sewela.
After securing acceptance from more than 97% of shareholders, the consortium invoked South Africa’s squeeze-out provisions to compulsorily acquire the remaining shares, completing the transaction in January 2026.
Barloworld has long been a cornerstone of South Africa’s industrial landscape, best known as the exclusive Caterpillar equipment distributor across Southern Africa. Its operations span mining, construction, energy and logistics services, placing it at the heart of large-scale infrastructure and resource development across the region.
The delisting removes the company from both the Johannesburg Stock Exchange (JSE) and A2X, closing a chapter that began in the early 1900s when Barloworld first emerged as a trading and industrial group.
Foreign capital reshapes markets
The Zahid Group, a family-owned Saudi conglomerate with interests across construction, manufacturing, transport and energy, already has long-standing ties to Caterpillar dealerships in the Middle East. The acquisition strengthens its footprint in African heavy equipment and industrial services, aligning with broader Middle Eastern investment flows into emerging markets and infrastructure-driven economies.
While the company’s headquarters and operational base are expected to remain in South Africa, the deal has sparked renewed debate about the shrinking pool of large industrial listings on the JSE. Analysts have pointed to rising compliance costs, weak local equity valuations and economic uncertainty as ongoing drivers behind delistings and foreign buyouts.
Barloworld’s exit follows a broader trend of long-established South African firms opting for private ownership or offshore capital partnerships, raising concerns about market depth, investor confidence and the future of public equity participation in the local economy.
The transaction has also drawn attention to governance considerations, particularly the participation of the chief executive officer in the acquiring consortium — a structure that, while legally compliant, has prompted scrutiny from some shareholders and market commentators around transparency and conflicts of interest.
Strategic focus ahead
Looking ahead, Barloworld is expected to continue operating under its existing brand and leadership, with Zahid Group representation at board level. The focus will remain on strengthening its core equipment distribution business, expanding service offerings, and navigating the shifting dynamics of mining and infrastructure investment across Africa.
For South Africa’s capital markets, however, the departure of a 124-year-old industrial heavyweight represents more than a corporate milestone — it underscores the growing challenge of retaining major companies within the public investment ecosystem amid global competition for assets and capital.