Saudi Arabia’s Zahid Group has legally finalized its acquisition of South African industrial company Barloworld, a deal for R23 billion ($1.3 billion) that takes the 123-year-old company private and is one of the most major Middle East-Africa corporate takeovers in recent years.
The consortium lead by Zahid Group through its subsidiary Gulf Falcon Holding completed the buyout in January 2026 after successfully acquiring the remaining outstanding shares through a compulsory squeeze-out.
Barloworld’s ordinary shares are set to be delisted from the Johannesburg Stock Exchange and A2X on January 27, marking the end of the company’s long tenure as a publicly traded company in South Africa.
Barloworld, a prominent player in Africa’s industrial and equipment markets, is best known as the sole distributor of Caterpillar construction and mining equipment in Southern Africa. The corporation operates in industries related to infrastructure development, mining, energy, and logistics throughout the region.
The deal came after months of investigation when Barloworld announced that company had made a voluntary self-disclosure to the United States.
The Commerce Department’s Bureau of Industry and Security is investigating potential export control problems. The probe, which pushed back the deal’s timeframe, was completed in September 2025.
Barloworld stated that the examination found no violations of US sanctions, but it did identify apparent violations of US export control requirements, which the business said it was rectifying.
A secondary legal examination by law firm Dentons decided that the facts presented did not constitute a violation of US sanctions under the applicable statute of limitations, removing a significant impediment to the takeover.
With regulatory issues resolved, the consortium made a standby offer of R120 per share. By November 2025, 97.6% of shareholders had accepted the offer, allowing the buyers to use Section 123 of South Africa’s Companies Act to compulsorily acquire the remaining shares.
Zahid Group’s entire takeover adds to its previous minority stake in Barloworld and underscores an increasing tide of Gulf investment in African industrial, energy, and infrastructural assets. Zahid Group, founded in Jeddah in 1943, is a family-owned conglomerate with operations in over 30 countries, including construction, energy, manufacturing, finance, travel, hotel, and oil services.
The Saudi group’s long-standing connection with Caterpillar complements Barloworld’s primary business. Zahid Group has been Caterpillar’s authorized distributor in Saudi Arabia for more than 75 years, and Barloworld has represented the American machinery manufacturer in Southern Africa for nearly a century.
“Leading this full buyout is a natural progression of our longstanding partnership and reflects our shared confidence in Barloworld’s future,” said a Zahid Group representative. “We believe this new structure will unlock further growth opportunities, combining Zahid Group’s global experience with Barloworld’s strong market position and exceptional leadership team.”
