Saudi Arabian conglomerate Zahid Group is reportedly in discussions to acquire Barloworld Ltd., a prominent South African distributor of Caterpillar Inc. machinery, valued at approximately 16.4 billion rand (roughly $886 million). This development follows Barloworld’s April announcement of ongoing negotiations that could impact its share price, though no specific details were provided at the time.
The talks are still in progress, and while there is potential for a deal, no final agreement has been reached, according to sources familiar with the situation. Both Zahid Group and Barloworld have opted not to comment on the matter.
This potential acquisition is part of a broader trend of Middle Eastern companies expanding their investments in Africa, competing with established players like China and France. For example, ACWA Power, a Riyadh-based energy company, recently signed a memorandum of understanding to invest $10 billion in South Africa’s renewable energy sector over the next decade. Similarly, Dubai-based logistics giant DP World currently operates nine ports across the African continent.
Zahid Group, a leading distributor of heavy machinery in Saudi Arabia, has been strategically increasing its stake in Barloworld over the past four years. One of its subsidiaries, Zahid Tractor and Heavy Machinery Co., now holds an 18.9% share in the South African company.
This potential acquisition underscores the growing influence of Middle Eastern firms in the African market, as they seek to secure strategic assets and expand their presence across the continent. While the outcome of the negotiations remains uncertain, a successful acquisition could mark a significant milestone in Zahid Group’s expansion efforts and potentially reshape the competitive landscape in the heavy machinery distribution sector in Africa.
If you are also interested in machinery industry news, feel free to bookmark our news page, where we share daily updates on industry trends and undercarriage parts maintenance tips on our web. If you’re in need of high-quality undercarriage parts, you can click the inquiry button to contact us. All our products are shipped directly from the factory, support OEM standards, and reflect our commitment to competitive pricing and superior quality!
Fulian Operation Team
2024.9.2
