Zahid Group Completes $1.3bn Acquisition of Barloworld in Landmark Middle East–Africa Deal
Saudi Arabia’s Zahid Group Finalises $1.3bn Barloworld Acquisition in Major Middle East–Africa Deal
Saudi Arabia’s Zahid Group has formally completed the acquisition of South African industrial conglomerate Barloworld, concluding a R23 billion ($1.3 billion) transaction that takes the 123-year-old company private and ranks among the most significant Middle East–Africa corporate takeovers in recent years.
The acquisition, led by a consortium anchored by Zahid Group through its subsidiary Gulf Falcon Holding, was finalised in January 2026 after the buyers secured the remaining outstanding shares via a compulsory squeeze-out.
Barloworld’s ordinary shares are set to be delisted from the Johannesburg Stock Exchange and A2X on January 27, bringing to an end its long history as a publicly listed South African company.
Barloworld is a key player in Africa’s industrial and equipment markets and is best known as the exclusive distributor of Caterpillar construction and mining equipment across Southern Africa. Its operations are closely linked to infrastructure development, mining, energy, and logistics across the region.
The transaction followed months of regulatory scrutiny after Barloworld disclosed that it had made a voluntary self-disclosure to the U.S. Department of Commerce’s Bureau of Industry and Security regarding potential export control issues.
That review, which delayed the deal’s completion, was concluded in September 2025. While no violations of U.S. sanctions were found, the process identified apparent breaches of export control regulations, which the company said it is addressing.
A separate legal assessment by international law firm Dentons concluded that the matters identified did not amount to a breach of U.S. sanctions within the applicable statute of limitations, clearing a major obstacle to the takeover.
With regulatory uncertainty resolved, the consortium proceeded with a standby offer of R120 per share. By November 2025, the offer had been accepted by 97.6% of shareholders, enabling the buyers to invoke Section 123 of South Africa’s Companies Act to compulsorily acquire the remaining shares.
Zahid Group’s full buyout builds on its previous minority stake in Barloworld and reflects a broader surge in Gulf investment targeting African industrial, energy, and infrastructure assets.
Founded in Jeddah in 1943, the family-owned conglomerate operates across construction, energy, manufacturing, finance, travel, hospitality, and oil services in more than 30 countries.
The acquisition also deepens a long-standing commercial alignment. Zahid Group has been Caterpillar’s authorised dealer in Saudi Arabia for more than 75 years, while Barloworld has represented the U.S. equipment manufacturer in Southern Africa for nearly a century.
Under the new ownership structure, Barloworld’s existing management team will remain in place, with Zahid Group taking board representation. The company has said Barloworld will retain its South African identity and operational independence.
The deal includes commitments to skills development and youth training, including a Saudi–South Africa upskilling programme aligned with Saudi Arabia’s Vision 2030 agenda.
For South Africa, the transaction highlights sustained foreign investor interest in strategic industrial assets despite domestic economic challenges.
For Zahid Group, it represents a long-term investment in Africa’s infrastructure, mining, and industrial growth, as Gulf capital continues to expand its footprint across the continent.
