International giant gets green light to buy South African company for R23 billion

Barloworld is an industrial company with a focus on industrial equipment and is the exclusive distributor of Caterpillar construction equipment in Southern Africa.

It is set to be acquired by Newco, which comprises Gulf Falcon Holding, a subsidiary of Saudi Arabia’s Zahid Group and Entsha, a company linked to Barloworld CEO Dominic Sewela. 

Zahid Group offers construction, energy, manufacturing, travel, financial, hospitality, oil and marketing services.

Shareholders have now been advised that the South African Competition Tribunal has approved Newco’s R23 billion acquisition of Barloworld.  

The approval is subject to certain agreed public interest conditions, which include the implementation of a broad-based black economic empowerment structure after delisting.

The Tribunal’s approval follows a positive recommendation from the South African Competition Commission in June and concludes the competition review process in South Africa.

The parties continue to work towards fulfilling the conditions required for the transaction to become unconditional, including competition approvals from other jurisdictions.

“We are delighted that the Tribunal has approved the transaction,” said Sydney Mhlarhi, spokesperson for Newco. ss.” 

“We maintain our firm belief that this transaction is a win for South Africa and ensures Barloworld’s long-term sustainability, offering a compelling premium for shareholders while delivering broad-based economic and value benefits.” 

It is noted that the Standby Offer remains open for acceptance, and shareholders who have not yet tendered their shares will have the opportunity to do so. 

The deadline for acceptance of the Standby Offer is 12:00 on the first Friday falling ten Business Days or more after the date the remaining conditions precedent to the Standby Offer are fulfilled. 

This is expected to be in September 2025, with a detailed timeframe found below: 

• On 24 June 2025, Barloworld paid an interim dividend of R1.20 per share, resulting in a net amount of R118.80 per share being payable by the terms of the Standby Offer. 
• The Longstop Date for fulfilment of all the conditions precedent to the transaction is 11 September 2025.    
• The Longstop Date will automatically be extended by 3 months if any regulatory approval has not been obtained by 11 September 2025.  
• Results of the Standby Offer will be released on SENS and the ANS on the first Business Day after the Standby Offer Closing Date.  

As reported by MoneyWeb, shareholders have opposed the deal, with two of the largest shareholders voting against it at a general meeting. 

This came amidst question marks over CEO Sewela’s alleged conflict of interest. The failure to get majority support from shareholders triggered the Standby Offer. 

Issued on BusinessTech by Luke Fraser | https://businesstech.co.za/news/business/835263/international-giant-gets-green-light-to-buy-south-african-company-for-r23-billion/