In one of the most significant milestones in South Africa’s M&A history, Standard Bank has orchestrated the R23 billion ($1.3 billion) takeover of Barloworld by NewCo, a special-purpose vehicle co-owned by Entsha Proprietary Limited (backed by the Sewela family) and Gulf Falcon Holding, a subsidiary of Saudi Arabia’s Zahid Group.
The transaction marks the largest private-sector investment from Saudi Arabia into South Africa and transforms Barloworld into a majority Black-owned industrial leader.
Following overwhelming shareholder approval, the standby offer closed on November 7, 2025, clearing all regulatory hurdles and paving the way for Barloworld’s delisting from the JSE and A2X.
Deal Snapshot: A Premium Payoff for Shareholders
Founded in 1902, Barloworld has long been synonymous with heavy industry, operating as Caterpillar’s exclusive distributor across Southern Africa. Despite revenue easing 5.8% to R18.1 billion ($1 billion) in H1 FY2025 amid mining headwinds, its diversified footprint made it a prime acquisition target.
NewCo offered R120 per share, an 87% premium over the 30-day VWAP, valuing Barloworld at R23 billion.
The generous valuation helped win over major shareholders, including Silchester International Investors and the Public Investment Corporation (PIC), which tendered its 21.93% stake.
By closure, 81.4% of shareholders had accepted, giving the deal a resounding mandate.
Standard Bank’s Deal Engineering Masterclass
At the heart of the transaction was Standard Bank, acting as joint financial advisor, sole lead arranger, underwriter, bookrunner, and guarantor.
Its R17 billion ($913 million) financing package leveraged deep GCC relationships, strategic structuring, and an integrated balance-sheet approach to overcome the complexities of a cross-border deal spanning multiple regulatory regimes.
“Our market reach and integrated capabilities made this scale possible, endorsing South Africa’s prospects and ushering GCC private capital into African entrepreneurship.”
Luvuyo Masinda, CEO, Standard Bank CIB.
This deal follows Standard Bank’s $25 million credit-line agreement with Saudi EXIM Bank, reinforcing its role as a bridge between Middle Eastern liquidity and African opportunity.
“It’s a resounding confidence vote in Barloworld and the region.”
Sydney Mhlarhi, spokesperson for NewCo.
READ ALSO:How Optasia and Standard Bank Made History with Africa’s Largest Fintech Listing
The blended financing, combining debt, guarantees, and minimal equity dilution, demonstrates Standard Bank’s growing dominance in emerging-market structured finance.
Key Milestones
| Date | Event | Details |
|---|---|---|
| Dec 2024 | Firm Intention Announced | NewCo’s initial bid confirmed |
| Aug 2025 | Competition Tribunal Approval | Cleared with 13.5% B-BBEE conditions |
| Oct 2025 | Offer Unconditional | All regulatory approvals secured |
| Nov 7, 2025 | Final Closure | 81.4% shareholder acceptances confirmed; delisting path initiated |
Empowerment and Phase 2: The Ownership Reset
Beyond numbers, the deal carries transformational significance.
Barloworld will now become majority Black-owned, with a second phase allocating an additional 13.5% stake to employees and historically disadvantaged persons (HDPs).
This realignment aligns with South Africa’s industrial policy and Broad-Based Black Economic Empowerment (B-BBEE) goals, blending global capital with inclusive local ownership.
Privatisation also gives Barloworld the agility to invest in green industrial technologies, expand across Africa, and operate free from quarterly market pressures.
A Catalyst for GCC–Africa Investment Flows
For Standard Bank, this deal is a strategic crown jewel, reinforcing its position as the go-to financier for mega-deals across Africa and beyond.
It may also signal the next wave of Saudi–Africa partnerships, following Zahid Group’s lead. Sectors like renewable energy, logistics, and manufacturing are likely next in line for Gulf capital, as Vision 2030 ambitions align with Africa’s industrial revival.
Amid easing load-shedding, policy reforms, and renewed investor confidence, the R23 billion transaction is more than capital. It’s a symbol of convergence between financial innovation and economic inclusion.
The Bottom Line
This deal redefines what’s possible for African finance: a complex, multi-stakeholder transaction executed with precision, purpose, and transformative potential.
Barloworld Overview
Barloworld South Africa vacancies attract professionals across multiple regions, offering career opportunities in logistics, automotive, and industrial sectors.
The Barloworld South Africa address can be found at key hubs, including Barloworld Johannesburg, Barloworld Pretoria, Barloworld Durban, and Barloworld East London.
These Barloworld locations serve as major operational centres supporting the company’s nationwide presence and commitment to innovation, customer service, and sustainable business growth.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
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