Barloworld to move into Mongolia as it looks to spend R8bn war chest
Company is in talks to buy American-owned Wagner Asia Group which operates in the vast mineral-rich country
Barloworld is moving into Mongolia as it looks to spend an R8bn war chest on growth-boosting acquisitions. The earth-moving equipment dealer and motor vehicle retailer is in talks to buy American-owned Wagner Asia Group, which operates in the vast mineral-rich country, sandwiched between Russia and China. Barloworld has long had operations in Russia’s Siberia province and has been on the lookout for growth in neighbouring areas. Mongolia’s growth rate surged from 1.2% in 2016 to 5.3% in 2017 and 6.3% in the first half of 2018, according to the World Bank, helped by its coal and copper exports. “Our competency is strong in emerging markets so when you look at Mongolia as a territory, it presents opportunity,” said Barloworld CEO Dominic Sewela, on the release of the company’s first-half results. Wagner Asia is run out of Colorado by the family-owned Wagner group and used to be partners with Barloworld in its Russian operations. “Think about running a business like that from Color...
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