The buyer, more specifically Barloworld's wholly owned subsidiary Barloworld Mongolia, was seeking an opportunity to "complement its competencies as part of its … strategy" in the medium term.
"The balance sheet is strong and this opportunity, adjacent to the current Russian operation, presents an attractive growth prospect within Barloworld's equipment division," the group added.
Wagner Asia Equipment's business, it said, will be combined with the Barloworld Russian business into a newly formed unit, Equipment Eurasia.
The remaining percentage of ownership for SGMS will remain in the hands of Battur Battulga.
The deal is expected to close around April 1.
Wagner parent Wagner International has been in business in Mongolia for over 22 years, Barloworld said. It is also a Caterpillar dealer in some US states.
