Barloworld Shareholders Block Zahid Group's $1.25 Billion Bid

Deal News | Feb 27, 2025 | Zawya

South African industrial conglomerate Barloworld faced a setback in a proposed buyout by Saudi Arabian firm Zahid Group. Shareholders voted against Newco's bid to acquire the entirety of Barloworld’s issued share capital at approximately $1.25 billion. The offer was for ZAR 120 ($6.5) per share. In a decisive move, Barloworld's shareholders did not provide the necessary majority approval, thus activating a standby offer as per company regulations on the Johannesburg Stock Exchange. Zahid Group, known for distributing heavy machinery in the Middle East region, was part of the Newco consortium along with another party, Entsha.

Sectors

Industrial Conglomerates
Mergers & Acquisitions

Geography

South Africa – Headquarters of Barloworld and location of shareholders who rejected the acquisition.
Saudi Arabia – Country where Zahid Group is based and from where the acquisition bid originated.

Industry

Industrial Conglomerates – Barloworld operates within this sector, involving multiple large-scale industrial activities like equipment and automotive.
Mergers & Acquisitions – The article is focused on the M&A activity involving a buyout proposal by a consortium, including Zahid Group.

Financials

$1.25 billion – Value of the takeover bid offered by Newco for Barloworld.
ZAR 120 ($6.5) per share – Price offered per share in the deal to acquire Barloworld.

Participants

Name	Role	Type	Description
Barloworld	Target company	Company	A South African industrial company involved in a potential acquisition deal.
Zahid Group	Bidding company	Company	A Saudi Arabian firm specializing in heavy equipment machinery, part of the Newco consortium aiming to acquire Barloworld.
Newco	Bidding consortium	Company	A consortium consisting of Zahid Group and Entsha, proposing the acquisition of Barloworld.
Entsha	Consortium member	Company	A participant in the Newco consortium, involved in the acquisition bid for Barloworld.