Saudi Arabia's Zahid Group is in advanced negotiations to acquire Barloworld Group, a leading industrial conglomerate led by South African business executive Dominic Sewela, according to sources familiar with the matter. The potential acquisition marks a significant move by the Saudi conglomerate to expand its presence in Africa.
Barloworld, a key distributor of Caterpillar equipment across Africa, has a market capitalization approaching $1 billion. While the company has confirmed that discussions are ongoing, it did not provide specifics, cautioning that a deal is not guaranteed. Both Zahid Group and Barloworld have declined to comment further on the matter.
Barloworld shares climb amid acquisition rumorsThe news of Zahid Group's interest has sparked a rise in Barloworld's share price , which has increased by more than 6.5 percent this week on the Johannesburg Stock Exchange (JSE), boosting its market capitalization to R18.16 billion ($985 million). If the acquisition proceeds, there is speculation that Barloworld could be taken private and delisted from the JSE.
Zahid Group, a major player in the Middle Eastern heavy equipment distribution market, currently holds an 18.9-percent stake in Barloworld through its subsidiary, Zahid Tractor and Heavy Machinery Co. This potential deal underscores a growing trend of Middle Eastern firms targeting African investments to compete with global powers like China and France.
