---
title: "Saudi Arabian Firm in Talks to Buy South Africa’s Barloworld"
description: "Saudi Arabia’s Zahid Group is in talks to acquire an African distributer of Caterpillar Inc.’s equipment, according to people with knowledge of the matter."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-08-06-saudi-arabian-firm-in-talks-to-buy-south-africas-barloworld/"
published: "2024-08-06T17:45:12"
updated: "2024-08-06T17:45:13"
lang: "en-ZA"
word_count: 229
---

# Saudi Arabian Firm in Talks to Buy South Africa’s Barloworld

> Saudi Arabia’s Zahid Group is in talks to acquire an African distributer of Caterpillar Inc.’s equipment, according to people with knowledge of the matter.

By Bloomberg · Published 6 August 2024, 19:45 SAST · Updated 6 August 2024, 19:45 SAST

## Content

South Africa-based Barloworld Ltd., which is valued at about 16.4 billion rand ($886 million), in April said it was in discussions that could effect its share price. It didn’t give details.

While talks are ongoing, there is no guarantee that a deal will be concluded, said the people, who asked not to be identified because the discussions are private. Zahid and Barloworld declined to comment.

Middle Eastern firms have [increasingly](https://www.bloomberg.com/news/articles/2024-03-21/uae-eyes-further-africa-deals-after-egypt-bailout) been seeking investments in Africa, jockeying for influence with established players like China and France. ACWA Power, a Riyadh-based company, has signed a memorandum of understanding to invest $10 billion in South Africa’s renewables industry over the next ten years, while DP World, the Dubai-based logistics company operates nine ports on the continent.

[Sign up here for the twice-weekly Next Africa newsletter](https://www.bloomberg.com/account/newsletters/next-africa?sref=OOcVchU0)

The Saudi group, a distributer of heavy equipment machinery in the Middle Eastern nation, started [buying](https://uk.marketscreener.com/quote/stock/BARLOWORLD-LIMITED-1413357/news/Zahid-Tractor-Heavy-Machinery-Co-Ltd-acquired-5-Stake-in-Barloworld-Limited-33910130/) shares of Barloworld four years ago. One of its units, Zahid Tractor and Heavy Machinery Co., owns 18.9% of the South African company.

Barloworld’s shares reversed losses to close 4.7% higher in Johannesburg on Tuesday even as the benchmark stock index dropped 0.2%.

The South African company is the official Caterpillar dealer in several African countries including Zambia, the Democratic Republic of Congo, Malawi, Angola and South Africa.

A deal could potentially also see Barloworld be taken private, the people said.