Standard Bank, Africa’s largest bank by assets, is proud to announce its partnership with a newly formed consortium, NewCo, to support the acquisition of industrial giant Barloworld in a landmark transaction valued at R23 billion.

Standard Bank played a pivotal role in the deal, acting as Joint Financial Advisor, Sole Mandated Lead Arranger, Underwriter, Bookrunner and Sole Guarantee Provider. In addition, Standard Bank provided innovatively structured acquisition financing for the full purchase consideration. 

This transformative transaction unites long-term, committed investors behind Barloworld and results in the formation of a majority black-owned South African company. 

Beyond that, the transaction signals the start of a new era of entrepreneurship that is backed by private capital investment into South Africa from a Gulf Cooperation Council (GCC) member state.

NewCo - a special-purpose vehicle created for the acquisition is owned by a consortium that includes Entsha Proprietary Limited, a newly incorporated entity owned by the Sewela family and Gulf Falcon Holding, a subsidiary of Saudi Arabia’s Zahid Group. The offer to acquire all of Barloworld’s ordinary shares at R120 each represents the full equity value of approximately R23 billion.

Barloworld, a South African multinational corporation founded in 1902, is a globally recognised industrial processing, distribution, and services company focused on two key sectors: industrial equipment & services and consumer industries. 

“We are immensely proud to have played a key role in delivering this landmark deal. Our deep understanding of client needs, the strength of our balance sheet, and advisory franchise as well as our 25-year-old connectivity into the GCC enabled us to support NewCo in executing a transaction of this scale and complexity. Without our market reach and integrated capabilities, closing a deal of this nature would not have been possible,” says Luvuyo Masinda, Chief Executive at Standard Bank Corporate & Investment Banking.

The transaction is a significant vote of confidence in South Africa and the broader African region, with implications extending across Southern Africa. It also represents the largest ever private sector cross-border acquisition by a Saudi entity into South Africa.   

According to Masinda, the emblematic transaction is a symbol of the credibility and strength of Standard Bank when it comes to delivering complex cross border transactions on the continent and underpins the value the bank places on meeting client needs and delivering services that provide meaningful impact. “Our purpose, ‘Africa is our home, we drive her growth,’ is more than a phrase, we deliver to boost companies on the continent in a way that drives impactful development,” he says.       

NewCo received its compliance certificate from the Takeover Regulation Panel, setting in motion the payment processes to complete the deal.

Barloworld will retain its name and remain headquartered in South Africa.