Tribunal approval bars retrenchments for two years and ensures Black ownership expansion through a phased 13.5 empowerment stake.
Buyout executed via Newco, backed by Entsha and Zahid Group, with Standard Bank providing R17 billion 965.36 million in funding guarantees.
PIC support helped ease governance concerns, paving the way for delisting and employee shareholding under the post-buyout empowerment plan.
Barloworld Group, the South African industrial conglomerate led by Dominic Sewela, has cleared its final regulatory hurdle after the Competition Tribunal approved a R23.3 billion 1.3 billion buyout by a management-led consortium and Saudi Arabias Zahid Group. The ruling paves the way for Barloworld to leave the Johannesburg Stock Exchange after more than eight decades.
Tribunal ties Barloworld deal to jobsThe tribunal tied its approval to conditions aimed at protecting jobs and broadening Black ownership. The merged entity is prohibited from retrenching South African workers for two years and must keep existing employment terms in place.
It also ordered a two-stage empowerment plan that will hand historically disadvantaged persons and employees a combined 13.5 percent stake. In the first phase, the Barloworld Empowerment Foundation will retain its 3.5 percent holding. The second phase, to be completed within 24 months of delisting, will allocate 5 percent to an employee share scheme and another 5 percent to a women-led consortium, subject to Competition Commission clearance.