SA Industrial Giant Barloworld Sold to Saudi Group For R23 Billion

• Barloworld, a 124-year-old South African industrial company, has been bought by a Saudi-led group for R23 billion and will no longer be listed on the JSE or A2X
• CEO Dominic Sewela said going private will help the company focus on customers and core operations instead of short-term market pressures
• The move also gives Barloworld more flexibility to make long-term decisions and support its cyclical business without shareholder constraints

Saudi company buys South African firm for R23 billion

Barloworld, a 124-year-old South African industrial company, has been bought by a Saudi-led group for R23 billion on 22 January 2026. The deal also means Barloworld will no longer be listed on the JSE or A2X.

According to Business Tech, CEO Dominic Sewela said the move was partly due to the high costs of being a public company. Delisting lets Barloworld focus more on its customers and day-to-day operations instead of constantly reporting to analysts and investors.

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“Being listed comes with a lot of overhead. You spend a huge amount of time talking to analysts and investors, trying to explain the business and justify numbers. That time could be spent focusing on our customers and operations,” said Sewela.

What is Barloword?

Barloworld is best known as the sole distributor of Caterpillar construction equipment in Southern Africa. It has operations in 16 countries and is focused on industrial equipment (heavy machinery and power systems) and consumer industries (Ingrain)Barloworld serves sectors like mining, construction, and food, and as of this year, was bought by Newco, which includes Saudi Arabia’s Zahid Group and a firm linked to Sewela

Almost all shareholders accepted the offer, and by 22 January 2026, the remaining shares were compulsorily bought, completing the takeover. Sewela explained that the process took time because of strict legal and governance checks, ensuring shareholders got fair value.

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Why de-list the company from the JSE?

He said being private also gives Barloworld more flexibility. It can focus on long-term goals, support its customers, and manage its cyclical business without pressure from public market expectations. For example, the company can decide whether to pay dividends each year rather than being forced by shareholder demands.

“Being private lets us focus on building value for the long term, instead of reacting to daily share price changes,” Sewela said.

He stressed the importance of long-term thinking, but reiterating that in public markets, you can be penalised for taking that approach.

"Being private allows us to stay true to that philosophy,” he said

Looking forward

Looking forward, Sewela said he can now focus on the company after its size decrease following the sale of its non-core operations.

"What’s left is our core industrial business, which is cyclical and requires close operational attention. I’ve been in this business for a long time, so I can focus on supporting the team and driving value where it matters most," he said

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Sewela believes the move to private ownership positions Barloworld for long-term success.

“Being private allows us to concentrate on building real value, supporting our customers, and running the business the right way," he continued.

Two articles listing Barloworld as the best in the business

• Barloworld Logistics is one of South Africa’s most recognised logistics firms, offering a wide range of services from freight forwarding and warehousing to global shipping. The logistics and supply chain industry is highly lucrative in the country, and while new entrants are proving to be strong competitors, established companies like Barloworld continue to lead the field. Hiring a reputable logistics company can also help businesses save on overhead costs while ensuring reliable delivery.
• Despite fierce competition, South African companies continue to grow and contribute significantly to the nation’s economy. In a recent list of the 100 best-performing companies in South Africa, Barloworld ranked in the top 10 for transport and logistics in 2019, highlighting its enduring impact on both local and international business.

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Previously, Briefly News reported that Toshiba, the once‑iconic Japanese electronics and industrial giant, announced in September 2023 that a $14 billion offer to take the company private was likely to succeed. Toshiba, which once symbolised Japan's economic might, grew into a vast conglomerate, but was in upheaval since it was rocked by a profit-padding scandal in 2015. The company also suffered from huge losses at its US nuclear subsidiary, followed by a recovery that brought pressure from new activist shareholders.

Source: Briefly News