BayWa strengthens cooperation with Barloworld Ltd in SA

Barloworld Limited, Johannesburg (South Africa), and BayWa AG, Munich, are planning to further expand their cooperation in agricultural technology and logistics technology with a new joint venture. Subject to the approval of the competition authorities, the BHBW Holdings (Pty) Ltd joint venture will start operating in early 2017. Barloworld South Africa and BayWa each hold a 50 percent stake in the new BHBW. The joint venture will be based on Barloworld's existing agricultural technology and logistics technology business. This includes approximately 400 employees, ten locations and a network of 40 sales partners for South Africa and other markets in southern Africa.

Klaus Josef Lutz, CEO of BayWa AG, sees agricultural trade as a major incentive for the mechanization and sustainable development of local agriculture. In addition to the retail business, BayWa plans to introduce digital farming solutions to the agricultural sector. "Thanks to the strong partnershop and experience of BayWa for Agri Services, we are convinced that this joint venture will successfully expand and develop business in the region." said Roland Schuler, a member of BayWa's managing board, with responsibility for Agri Services.

Clive Thomson, CEO of Barloworld Limited, sees, "good opportunities for the agricultural technology and logistics technology sectors in South Africa. "We are looking forward to working with BayWa and also to merging our core principles in order to build a greater, more successful business and to create more work opportunities and improve food security in that region."

This joint venture is the second project between Barloworld and BayWa, in 2015 they founded a similar 50:50 partnership in Zambia.

BHBW is going to build on the experience and competencies of both partners. The goal is to improve productivity, sustainability and to develop overarching solutions within agriculture. In the first 12 months, solutions and products within the areas of mechanization, digital farming and agronomy are going to be implemented.

For more information:

BayWa AG
St.-Martin-Str. 76
D-81541 Munich
Tel: +49 (089)9222-3692
Fax: +49 (089)9212-3698