Singapore-based Olam Group is reportedly in advanced discussions to sell its remaining stake in its agribusiness unit to Saudi Arabia’s state-owned Saudi Agricultural and Livestock Investment Company (Salic). According to a Wall Street Journal report citing anonymous sources, the deal could be finalized as early as this month.
However, since negotiations are still ongoing, there is no certainty that the transaction will be completed. When approached for a comment, Olam Group did not confirm the deal but referred to its earlier announcement in November, where it acknowledged receiving an unsolicited offer from Salic to acquire its agricultural products business. The company stated at the time that it was reviewing the offer.
This potential acquisition follows Salic’s previous investment in Olam Agri, when it acquired a 35.43% stake in 2022 for $1.24 billion, valuing the business at approximately $3.5 billion.
Salic is a subsidiary of Saudi Arabia’s Public Investment Fund (PIF) and primarily focuses on agricultural investments, with a portfolio spanning grain production, livestock, fish farming, and poultry industries.
Olam Agri is a key player in the global agricultural supply chain, specializing in the trade of grains, animal feed, rice, cooking oils, specialty grains and seeds, cotton, wood products, and rubber. Additionally, the company offers financial services related to agribusiness. Operating in over 30 countries, Olam Agri generated $23 billion in revenue in 2023.
If the deal proceeds, it would further strengthen Saudi Arabia’s position in global food security and reinforce its commitment to investing in agricultural supply chains worldwide.
