Tribunal approves R23bn Barloworld acquisition by Newco, sets conditions

Barloworld set to delist from JSE as Saudi Arabia's Zahid Group takes shareholding

- TAWANDA KAROMBO-

THE Competition Tribunal has granted approval for the acquisition of industrial giant Barloworld by Newco, contingent upon fulfilling specific public interest and empowerment criteria aimed at benefiting historically-disadvantaged persons (HDPs) in South Africa.

This heralds a significant shift not only for Barloworld but for its employees, as the merger promises structural changes rooted in empowerment and employee participation.

Former executives in Barloworld are acquiring the group 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 last week 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 Competition Tribunal on Friday announced that it has approved the proposed merger, stressing that conditions related to employment, empowerment and ESOP be met.