Zahid Group completes Barloworld buyout
Saudi Arabia’s Zahid Group has completed its acquisition of South African industrial heavyweight Barloworld, closing a R23 billion ($1.3 billion) deal that takes the 123-year-old company private. A consortium anchored by Zahid through its subsidiary Gulf Falcon Holding finalised the transaction in January 2026 after securing the remaining outstanding shares through a compulsory squeeze-out. Barloworld
Zahid Group completes Barloworld buyout
Saudi Arabia’s Zahid Group has completed its acquisition of South African industrial heavyweight Barloworld, closing a R23 billion ($1.3 billion) deal that takes the 123-year-old company private. A consortium anchored by Zahid through its subsidiary Gulf Falcon Holding finalised the transaction in January 2026 after securing the remaining outstanding shares through a compulsory squeeze-out. Barloworld will delist its ordinary shares from the Johannesburg Stock Exchange and A2X on January 27, ending its long stretch as a publicly traded name in South Africa’s industrial sector.
Barloworld’s role in Southern Africa
Barloworld holds a strong position in markets tied to infrastructure delivery, mining output, energy projects, and logistics networks across Southern Africa. The company is best known as the exclusive distributor of Caterpillar construction and mining equipment in the region, supplying machines, parts, and after-sales support to contractors and mining operations that rely on high equipment uptime. Its footprint has made it a key link in the heavy equipment value chain, particularly in economies where capital projects and commodity cycles shape demand.
Regulatory clearance and what comes next
The deal followed months of scrutiny linked to U.S. export control compliance. Barloworld previously submitted a voluntary self-disclosure to the U.S. Commerce Department’s Bureau of Industry and Security over potential export control issues, and the review concluded in September 2025. The company said investigators found no violations of U.S. sanctions, although they identified apparent breaches of U.S. export control regulations, which Barloworld said it is addressing. A separate legal assessment by law firm Dentons also reviewed the matter and concluded the facts identified did not amount to a violation of U.S. sanctions within the applicable statute of limitations, removing a key obstacle to closing.
Zahid’s full buyout builds on its earlier minority stake and strengthens long-standing Caterpillar ties. Zahid has served as Caterpillar’s authorised dealer in Saudi Arabia for more than 75 years, while Barloworld has represented the U.S. machinery maker in Southern Africa for nearly a century. Under the new ownership structure, Zahid has said Barloworld’s management team will continue running the business, with board representation at group level and operational control remaining in South Africa. The deal also includes commitments around skills development and youth training, including a Saudi–South Africa upskilling programme aligned with Vision 2030.
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