A unit of Saudi Arabia’s Zahid Group, in collaboration with its local partners, has proposed to acquire all outstanding shares of Barloworld Ltd., a key player in South Africa.

The consortium, which includes Gulf Falcon Holding Ltd., a fully owned subsidiary of Zahid, alongside Entsha Ltd.—associated with Barloworld’s CEO Dominic Sewela—has submitted a bid of 120 rand per share, as detailed in a statement released by Barloworld on Wednesday.
Following this announcement, Barloworld’s stock price surged by up to 19% in Johannesburg trading.

Significantly, the offer remains unaffected by the 3.10 rand dividend declared by the company on November 22, resulting in a comprehensive “value unlock” of 123.10 rand per share. This represents an 87% premium over Barloworld’s 30-day volume-weighted average price before the advisory for shareholders to exercise caution in April.

“Zahid Group is committed as a long-term shareholder of Barloworld and has confidence in the company’s intrinsic strengths,” the firm stated.

Should this transaction proceed, the Johannesburg-based entity—the African distributor for Caterpillar Inc. (a leader in the construction and mining equipment industry)—will transition to a privately held company.

This engagement reflects a broader trend where Middle Eastern enterprises actively invest in Africa, vying for influence alongside established nations such as China and France. Notably, ACWA Power from Riyadh has entered a memorandum of understanding to inject $10 billion into South Africa’s renewable energy sector over the next ten years. Dubai-based DP World oversees operations at nine ports across the continent.

The Saudi group has strategically acquired Barloworld shares over the past four years, with Zahid Tractor and Heavy Machinery Co. currently holding an 18.9% stake in the South African firm.

Barloworld is recognized as the official Caterpillar dealer in several African markets, including Zambia, the Democratic Republic of Congo, Malawi, Angola, and South Africa. Additionally, the company maintains operations in Russia, which are currently under internal investigation for potential export compliance issues.