Sale of iconic South African company gets the go-ahead

Following a positive recommendation from the Competition Commission, the Competition Tribunal has given Barloworld and Newco’s transaction the green light.

Barloworld is a South African holding company with interests in industrial equipment, industrial services, and agriculture.

Dating back to 1902, the company has since grown to an industrial giant, with operations in 16 countries worldwide.

In 2024, Barloworld announced that a consortium of investors comprising Entsha (51%) and long-term shareholder Zahid Group (49%) planned to acquire the company.

This led to the establishment of Newco, a special-purpose vehicle incorporated for the proposed merger, which is jointly controlled by Entsha and Falcon Holding.

The transaction would result in Barloworld’s delisting from the JSE and becoming a privately held company.

The consortium offered R123.10 per Barloworld share, representing a premium of 87% to the company’s 30-day average share price. This values the company at a total of R23 billion.

Following the implementation of the proposed transaction, Barloworld will retain its name and remain headquartered in South Africa.

On Monday, 18 August, the company announced that the Competition Tribunal had approved Newco’s R23 billion acquisition of Barloworld, subject to some public interest conditions.

These conditions include implementing a broad-based black economic empowerment structure after delisting.

The Tribunal’s approval follows a positive recommendation from the South African Competition Commission, announced on 9 June 2025, and concludes the competition review process in South Africa.

“The parties are continuing to work towards the fulfilment of the remaining conditions required for the transaction to become unconditional, including competition approvals from other jurisdictions,” Newco and Barloworld said. 

“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,” Newco spokesperson Sydney Mhlarhi said. 

“It marks a significant step toward concluding the transaction and provides a further level of certainty for shareholders.” 

“We maintain our firm belief that this transaction is a win for South Africa and ensures Barloworld’s long-term sustainability, offering a compelling premium for shareholders while delivering broad-based economic and value benefits.”