Logistics and fleet management group Barloworld said on Monday it had agreed to buy two equipment businesses in Mongolia for about R3.252bn.

Barloworld will buy 100% of Wagner Asia Equipment and 49% of SGMS in the mineral-rich country.

The target companies are engaged in the business of selling and distributing construction equipment, mining equipment, power systems and related goods and services in Mongolia, primarily under the Caterpillar brand, Barloworld said.

The Wagner Asia Equipment business will be combined with the current Barloworld Russian business unit into a newly formed Equipment Eurasia unit.

“The group balance sheet is strong and this opportunity, adjacent to the current Russian operation, presents an attractive growth prospect within the Equipment division,” Barloworld said in a statement.

In morning trade on Monday, Barloworld's share price was up 0.94% to R94.28, having fallen 16.37% so far in 2020.