- Barloworld, valued at 878 million, is in talks to sell its African Caterpillar distribution business to Zahid Groups consortium.
- Saudi Arabias Zahid Group, increasing African investments, seeks deeper influence in Africa's infrastructure sector.
- Barloworld faces financial struggles, with a revenue decline, while CEO Dominic Sewela remains committed to its recovery.
Barloworld Group, a leading industrial conglomerate led by South African business executive Dominic Sewela, is in talks to sell its African Caterpillar distribution business to a consortium led by Saudi Arabias Zahid Group.
The bid, led by Zahid Groups Gulf Falcon Holding and South Africas Entsha Ltd., would involve acquiring Barloworlds shares through a special-purpose vehicle, potentially paving the way for the companys privatization. Barloworld is valued at around R16 billion 878 million.
Saudi Arabia eyes greater influence in AfricaZahid Group, which already holds an 18.9 percent stake in Barloworld through Zahid Tractor and Heavy Machinery Co., has been ramping up its investments in Africa.
The move aligns with Saudi Arabias broader strategy to expand its presence on the continent amid competition from China and Europe. Zahids entry into the full acquisition talks signals its intent to deepen its influence in Africas growing infrastructure market.
This transaction comes as other Saudi companies also ramp up their investment strategies in Africa. ACWA Power plans to invest 10 billion in South Africas renewable energy sector, while DP World has made its mark operating nine ports across the continent.
