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In one of the most significant Middle East–Africa corporate takeovers in recent years, Saudi Arabia’s Zahid Group has officially completed the acquisition of South African industrial heavyweight Barloworld, sealing a deal worth R23 billion ($1.3 billion) and taking the 123-year-old company private.

The transaction marks a major moment in Africa’s industrial and investment landscape. Barloworld, long regarded as a cornerstone of Southern Africa’s infrastructure and mining economy, will be delisted from the Johannesburg Stock Exchange, ending more than a century as a publicly traded firm.

A Strategic Bet on Africa’s Industrial Future

Founded in Jeddah in 1943, Zahid Group is a family-owned Saudi conglomerate with operations spanning construction, energy, manufacturing, finance, hospitality, and oil services across more than 30 countries. Its full buyout of Barloworld builds on an existing minority stake and reflects a deepening wave of Gulf investment into Africa’s core industrial sectors.

Barloworld is best known as the exclusive distributor of Caterpillar construction and mining equipment across Southern Africa, operating at the heart of industries tied to infrastructure development, energy, logistics, and resource extraction.

The strategic alignment between the two firms runs deep. Zahid Group has served as Caterpillar’s authorised dealer in Saudi Arabia for over 75 years, while Barloworld has represented the U.S. machinery giant in Southern Africa for nearly a century. The deal effectively unites two regional powerhouses under a shared industrial legacy.

Clearing Regulatory Hurdles

The acquisition followed months of regulatory and legal scrutiny. Barloworld had previously submitted a voluntary disclosure to the U.S. Commerce Department over potential export control issues, delaying the deal’s timeline.

By late 2025, investigations concluded with no violations of U.S. sanctions, clearing the final obstacles to the takeover. With more than 97% of shareholders accepting the offer, Zahid Group invoked South Africa’s Companies Act to compulsorily acquire the remaining shares.

What Changes Under Private Ownership

Despite the scale of the acquisition, Zahid Group has committed to maintaining Barloworld’s South African identity and operational independence. The existing management team will remain in place, with Zahid taking board representation but not day-to-day control.

The new ownership structure is expected to unlock long-term growth opportunities, combining Zahid Group’s global capital base with Barloworld’s regional expertise.

The deal also includes commitments around skills development and youth training, including a Saudi–South Africa upskilling programme aligned with Saudi Arabia’s Vision 2030 agenda.

A Signal of Gulf Capital’s Growing Role in Africa

Beyond the numbers, the takeover sends a powerful signal about Africa’s evolving investment landscape. As traditional Western capital becomes more cautious, Gulf investors are rapidly positioning themselves as long-term partners in Africa’s infrastructure, energy, and industrial growth.

For South Africa, the acquisition underscores continued foreign investor confidence in strategic assets despite domestic economic pressures. For Saudi Arabia, it represents a calculated bet on Africa’s industrial future — not as a short-term play, but as a generational investment.

This is not just a corporate transaction. It is part of a broader shift in global capital flows, where Africa is increasingly shaped by partnerships from the Global South, not just the West.

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