Barloworld on Mongolia buying spree

South Africa-headquartered Barloworld will soon be a bit bigger with its purchase of 100% of Caterpillar dealer Wagner Asia Equipment as well as 49% of SGMS for R3.25 billion (US$216 million)
Barloworld on Mongolia buying spree Barloworld on Mongolia buying spree Barloworld on Mongolia buying spree Barloworld on Mongolia buying spree Barloworld on Mongolia buying spree

Barloworld's acquisition of Caterpillar dealer Wagner Asia should close on or about April 1, 2020

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.