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Wednesday, 04 January 2017

Barloworld and BayWa to extend collaboration in southern Africa

South African Barloworld Limited, Johannesburg, and BayWa AG, Munich (Germany) are to establish a new joint venture to further their agriculture and materials handling operations in southern Africa. Subject to approval by competition authorities, the joint venture BHBW Holdings (Pty) Ltd is to commence operations in early 2017. Barloworld South Africa and BayWa will each have a 50 percent stake in BHBW. The joint venture will build on the current Handling and Agriculture business of Barloworld consisting of about 400 employees and ten locations as well as a network of 40 sub-dealers covering South and Southern Africa. BHBW will have distribution rights for AGCO brands Massey Ferguson and Challenger in agriculture, and Hyster-Yale brands Hyster and UTILEV on the materials handling equipment side. Management, staff and infrastructure remain in place, as does the existing Barloworld Agriculture dealer network. This is the second joint venture between Barloworld and BayWa: In 2015, the two companies established a similar 50/50 partnership in Zambia. Strong synergies and a shared vision for supporting food production in sub-Saharan Africa have now resulted in a strengthening of the relationship. BHBW will build on the expertise of the joint venture partners to grow its offering to the agriculture value chain, with a view to provide a full line of integrated solutions that will aid farmers’ productivity, sustainability and profitability. Additional products and solutions around mechanisation equipment, Digital Farming and agronomy are set to be introduced over the course of the first 12 months of operation.

Source: www.southafrica.diplo.de/