Dominic Sewela led-Barloworld’s $1.3 billion buyout gets green light from regulator

Key Points

• South Africa’s regulator clears Dominic Sewela-led Barloworld $1.3 billion buyout, paving way for delisting after more than 80 years on JSE. 
• Buyout includes 13.5% Black Economic Empowerment scheme, majority ownership by 100% Black-owned Entsha. 
• Shareholders must approve by June 30, 2025; deal financed by Standard Bank with PIC backing.

Barloworld Group, the South African industrial conglomerate led by Dominic Sewela, is on track to exit public markets after South Africa’s Competition Commission gave its nod to a proposed R23 billion ($1.3 billion) buyout. The approval marks a significant milestone in the company’s transition from public to private ownership, ending its over 80-year run on the JSE.

The deal, driven by a consortium that includes Saudi Arabia’s Zahid Group, the Katlego Le Masego Trust, and the 100 percent Black-owned entity Entsha, will see Newco—a special-purpose vehicle—acquire the remaining Barloworld shares it does not already control at R120 ($6.80) per share.

Empowerment deal conditioned to green light

The Commission’s clearance is conditional on Newco implementing a 13.5 percent Broad-Based Black Economic Empowerment (B-BBEE) scheme following the delisting of Barloworld from both the Johannesburg Stock Exchange and A2X Markets. The inclusion of Entsha in a majority role supports South Africa’s push for more inclusive corporate ownership structures. 

The Public Investment Corporation (PIC), which manages over R2 trillion (152 billion) in assets and is one of Barloworld’s largest shareholders, has already pledged support bringing total shareholder support to nearly 47 percent.. In addition, Standard Bank is financing R17 billion ($961 million) to facilitate the transaction, according to a February statement.

Countdown to shareholder decision

Barloworld shareholders have until 30 June 2025 to accept the offer. Newco will review the level of support before finalizing the buyout. The final hurdle remains approval by the Competition Tribunal, which will decide whether to sanction the transaction’s implementation. 

Founded in 1902, Barloworld is a leader in equipment distribution, industrial services, and logistics, holding exclusive rights to distribute Caterpillar machinery in Southern Africa. Despite a 5.8 percent revenue decline in the first half of fiscal 2025 to R18.1 billion ($1 billion), the company remains a vital industrial player. Revenue drops included a 37 percent slump in its Vehicle and Transport (VT) division and a 6 percent decline in Southern Africa Equipment.