Saudi Arabia’s Zahid Group Buys South Africa’s Barloworld for $1.4 Billion

Saudi Arabia’s Zahid Group has acquired South African industrial conglomerate Barloworld in a R23 billion (approximately $1.3 billion) transaction, marking one of the largest cross-border acquisitions in the African industrial sector in recent years. The transaction, executed through Zahid’s subsidiary Gulf Falcon Holding, was concluded in January 2026 after acquiring the remaining outstanding shares via a compulsory squeeze-out.

The acquisition was structured as a full takeover, with Zahid Group purchasing all outstanding shares of Barloworld. Financial terms indicate a total transaction value of R23 billion. Barloworld, which operates across mining, construction, energy, and logistics sectors, reported revenue of R37.7 billion in 2025.

As a result, Barloworld delisted its ordinary shares from the Johannesburg Stock Exchange and A2X in January 27, ending its 123-year history as a publicly traded industrial company in South Africa.

Under the agreement, Barloworld’s existing management team will remain in place, and operational continuity is expected in all key divisions. The acquisition includes commitments related to workforce retention and skills development programs.

Background on the Companies

Barloworld is a South African industrial conglomerate with a near-century-long presence in heavy equipment distribution and services, including representation of Caterpillar across Southern Africa. Zahid Group, a family-owned Saudi conglomerate, has represented Caterpillar in Saudi Arabia for more than 75 years. The two companies have maintained a long-standing commercial relationship, which analysts say may have contributed to the deal.

What does this signal about Africa’s industrial future?

This acquisition also reflects a broader shift in how global capital views Africa. Gulf investors are increasingly targeting infrastructure, energy, and industrial assets rather than speculative or consumer-led plays. These sectors align with long-term national development goals and offer predictable, if patient, returns. For South Africa, the deal signals continued foreign interest in foundational industries despite economic headwinds. For the continent more broadly, it reinforces a growing truth: Africa's next phase of growth will be built less on speed and more on systems. Industrial partnerships, not flashy startups, will carry much of that weight.

Importantly, the transaction preserves operational continuity. Barloworld’s management remains in place, and commitments around skills development and training point toward a long-term presence rather than extraction. This is consistent with Zahid Group’s history as a family-owned conglomerate accustomed to multi-generational thinking. In heavy industry, stability is often more valuable than reinvention.

In a global economy increasingly dominated by speed and speculation, this deal reminds us that some of the most powerful business outcomes are built slowly. As Africa’s infrastructure and industrial sectors continue to attract global capital, the most successful investments are unlikely to be driven by momentum alone.

The R23 billion acquisition of Barloworld by Zahid Group represents a major cross-border investment in Africa’s industrial economy. While long-term outcomes will depend on execution and integration, the deal signals sustained foreign interest in foundational sectors such as mining, logistics, and energy, even amid broader economic headwinds.