Barloworld's future at stake as Competition Tribunal hears acquisition details

THE Competition Tribunal hearing concerning the acquisition of the longstanding South African company Barloworld by Newco has ignited discussions around empowerment for historically disadvantaged persons as well as the company’s impending delisting from the Johannesburg Stock Exchange (JSE).

- TAWANDA KAROMBO

As the details unfolded on Wednesday, tensions rose over the implications of this significant transaction.

Former executives in Barloworld are acquiring Barloworld through Entsha Proprietary Limited while Saudi Zahid Group is the other shareholder in Newco. With Newco intending to bump up its shareholding in the South African company, Barloworld will ultimately be delisted from the JSE.

The merging parties through their legal representative told the Competition Tribunal hearing on Wednesday that the delisting of Barloworld was a major condition for the implementation of an Employee Share-Ownership Program (ESOP).

After delisting, a women led consortium will also be empowered into the company.

“The merger parties’ position is quite clear that if there is no delisting, they're not in a position to implement an ESOP. That being said, we are confident and the likelihood is that there will be a delisting,’ the merging parties told the Competition Tribunal hearing.