Newco acquires Barloworld for N$23 billion

Chamwe Kaira

The South African Competition Tribunal has approved Newco’s N$23 billion acquisition of Barloworld, subject to public interest conditions, including the implementation of a broad-based black economic empowerment structure after delisting.

Barloworld Equipment, a subsidiary of Barloworld, operates across Namibia, Angola, Botswana, Eswatini, Lesotho, Malawi, Mozambique, South Africa, Zambia, Zimbabwe, and the Democratic Republic of Congo’s Katanga province.

In Namibia, Barloworld Equipment distributes and supports Caterpillar and other heavy machinery used in mining, construction, and other industries. 

The company has operations in Windhoek, Walvis Bay, and Swakopmund. Its services include oil and gas ratings, marine power solutions, industrial engine ratings, electric power ratings, and oil and gas sustainability. 

The company has also committed to participate in Namibia’s oil and gas industry.

The Tribunal’s approval follows a positive recommendation from the South African Competition Commission, announced on 9 June, and concludes the competition review process in South Africa.

The parties are working to fulfil remaining conditions for the deal to become unconditional, including competition approvals in other jurisdictions. 

“Shareholders will be advised in due course of any material developments in this regard,” the company said.

Spokesperson for Newco, Sydney Mhlarhi, welcomed the approval. “We are delighted that the Tribunal has approved the transaction. 

This is a significant transaction milestone which fulfils a key transaction condition and concludes the South African competition process,” he said.

In December, Saudi Caterpillar dealer Zahid announced it had acquired 49% control of Barloworld in South Africa. 

Barloworld is the largest Caterpillar dealer in Africa, one of the largest globally, and owns the world’s second-largest Caterpillar equipment remanufacturing plant. 

Zahid Group is a leading family-owned Saudi Arabian business.

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