Construction Barloworld rejects Zahid’s $1.25bn takeover bid By Neil Halligan February 27, 2025, 3:53 PM Supplied/Caterpillar Barloworld is the official distributor for Caterpillar construction equipment in South Africa Shareholders at South African construction equipment company Barloworld have voted against a takeover offer by Saudi company Zahid Group. The Jeddah-based conglomerate offered to buy shares of the South African listed company at 120 rand ($6.50) apiece, valuing it at around $1.25 billion. The deal failed to secure the majority required, Barloworld said in a statement. Barloworld’s shares dropped 7 percent in early trading in Johannesburg on Wednesday but recovered much of that on Thursday. Silchester International Investors, an investment manager that represents clients who control almost 18 percent of Barloworld’s stock, previously said the offer would need to be at least 130 rand per share. Gulf Falcon Holding, a Zahid Group subsidiary, and Entsha, a South African construction company that is linked to Barloworld’s CEO, Dominic Sewela, made the offer in December. Zahid Group, which has been the primary distributor of Caterpillar construction equipment in Saudi Arabia since 1950, owns about 19 percent of Barloworld’s shares. Ambitious plans accelerate Gulf construction costs Drake & Scull awarded contracts worth over $270m Abu Dhabi tenders more stormwater projects Barloworld is the official Caterpillar dealer in South Africa, Zambia and the Democratic Republic of Congo, among other countries in Africa. Barloworld also has a consumer industries business that provides large companies with the ingredients for the manufacture of a range of products including food and beverages, paper, pharmaceuticals, building materials and adhesives. Zahid Group has a portfolio of companies operating in 14 different sectors, including construction, real estate, financial services and the oil and gas industry.
