Barloworld R23bn takeover clears key hurdle with CompCom approval

Barloworld is one step closer to being bought out and delisted from the JSE, after the Competition Commission issued a positive recommendation on the proposed R23 billion deal.

The transaction would see Newco, created for the buyout and backed by a consortium including the Katlego Le Masego Trust and Saudi Arabia’s Zahid Group, acquire the remaining shares in the industrial giant it does not already own.

Newco has offered R120 per share for all Barloworld ordinary shares not held by excluded shareholders. The deal has been structured as a standby offer and has already secured the support of the Public Investment Corporation (PIC), one of the company’s largest investors.

Read:
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The Commission’s approval, announced on Monday, 9 June, is conditional on Newco implementing a 13.5% broad-based black economic empowerment (B-BBEE) transaction once Barloworld is delisted from the JSE and A2X. The group Entsha will have majority input in Newco and is a 100% black-owned South African entity.

Barloworld has exclusive rights to distribute Caterpillar equipment in Southern Africa and has been listed on the JSE for over eight decades. If the buyout is finalised, it will end an era for one of South Africa’s most recognisable industrial firms.

Shareholders have until 30 June 2025 to accept the offer. Newco will then assess acceptances and decide whether to proceed with the transaction or waive remaining conditions.

The Competition Tribunal must still formally approve the deal before implementation.

Further updates will be provided as developments unfold, the company said

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