South African industrials giant Barloworld announced that it has sold its steel tube business Barloworld Robor to a consortium comprising of its current management, a black economic empowerment investor and staff for up to R480 million. Barloworld said it would use the estimated R480 million for its general corporate purposes. It said all conditions for the successful conclusion of the transaction had been met, including Competition Commission approval.

In terms of the deal, Robor's current management team led by its CEO Mr Mike Coward would have 44% of the new company, black economic empowerment group RBR Investments including Yard Capital 18%, RBR Investments which represented Robor's senior black management and staff 10% and private equity business RMB Ventures 28%.

Barloworld had earlier in May had announced that it would exit its steel tube business. Mr Tony Phillips CEO of Barloworld said that the transaction was an extremely satisfactory conclusion to the strategy of exiting the business. He said "The decision to exit the business was made as part of our strategy to create sustainable value by focusing on a core group of market leading businesses. Once again we have been able to create a significant empowerment transaction while at the same time unlocking value for our shareholders."