Barloworld’s Billion-Rand Buyout Nears the Finish Line with Green Light from Competition Watchdog

One of South Africa’s oldest industrial icons is on the brink of a bold new chapter

It’s almost the end of an era — and the start of something potentially transformational. Barloworld, a staple of South Africa’s industrial sector for more than a century, is inching closer to delisting from the Johannesburg Stock Exchange (JSE) after securing a key approval in its R23 billion takeover deal.

This week, the Competition Commission gave the green light for a controlling 40.93% stake in Barloworld to be sold to a joint consortium led by Entsha, a locally-rooted investment vehicle created for this very deal and Saudi Arabia’s Zahid Group, a global powerhouse with operations across 33 countries.

But the story doesn’t end there.

Local leadership and global muscle

The Entsha consortium is fronted by none other than Dominic Sewela, Barloworld’s current CEO. His involvement sparked concerns from the Public Investment Corporation (PIC), South Africa’s largest asset manager, over transparency and governance. Those concerns appear to have been addressed, paving the way for a deal that could see Sewela emerge as a major player in the next chapter of Barloworld’s history.

Sewela will ultimately control 51% of the consortium through a family trust, while Zahid Group, best known globally for its strong ties to Caterpillar, will hold the remaining stake.

Social media response has been mixed. Some see the move as a savvy transformation play that keeps the company under partial South African leadership. Others worry about the transparency of a deal where the sitting CEO becomes a key buyer.

What’s at stake for South Africa

If the transaction goes ahead in full, Barloworld will exit the JSE after 84 years, a significant moment for South Africa’s corporate landscape. Founded in 1902 as Thomas Barlow & Sons, the company has morphed from a seller of woollen goods into a sprawling industrial conglomerate with operations in 16 countries, most notably known for its exclusive Caterpillar distributorship across Southern Africa.

That distributorship is no small matter. Caterpillar has thrown its support behind the deal, a critical vote of confidence given the company’s global scale and reliance on regional stability.

Broad-based empowerment and the path forward

One of the biggest wins for South Africa is the embedded commitment to transformation. As a condition of the Competition Commission’s approval, the consortium will be required to implement a 13.5% broad-based Black Economic Empowerment (BEE) transaction once Barloworld delists from the JSE and A2X. That’s a serious commitment and a potential model for future large-scale acquisitions in the country.

Yet, for all the progress, hurdles remain. The initial “scheme of arrangement” failed earlier this year, triggering a fallback Standby Offer. With the PIC’s 21.93% stake now in the consortium’s pocket, the offer is back on the table and could see ownership climb from the committed 40.93% to a full 100%, depending on shareholder votes by month-end.

Why it matters beyond the boardroom

Deals like this are about more than shareholder returns or regulatory filings. They reshape industries, influence job markets, and reflect broader shifts in how South African companies evolve in a globalised world.

As one X (formerly Twitter) user put it, “Barloworld going private after 80+ years is wild. Hope we’re not just trading local legacy for foreign cash.”

There’s a sense of nostalgia mixed with anticipation. After all, Barloworld isn’t just a company,  it’s part of the story of South African industrialisation.

With the Competition Commission’s blessing, the final step is approval from the Competition Tribunal. From there, it’s all eyes on the shareholder vote.

The company has promised to keep investors updated as the remaining conditions are met. For now, the clock is ticking and South Africa is watching.

One company’s transformation could set the tone for many more to come.

{Source: IOL}

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