The Saudi Agricultural and Livestock Investment Company (SALIC), a wholly owned subsidiary of the Public Investment Fund (PIF) of the Kingdom of Saudi Arabia, has announced it has acquired a 35.4% stake in commodity trading and processing company Olam Agri Holdings, a wholly owned subsidiary of the Olam Group.

SALIC said it expected the US$1.24bn transaction to be completed this year, subject to approval from the relevant international authorities.

“Our partnership with Olam Agri aims to develop and support SALIC’s mission as PIF’s investment arm in the food and agriculture sector,” SALIC Group CEO Sulaiman Al Rumaih said in the 29 March statement.

The partnership with Olam Agri would help progress SALIC’s aim to deliver food security in Saudi Arabia, SALIC said.

Olam Agri specialises in the processing and trading of animal feed, grains, oilseeds and rice and is active in more than 30 countries.

Following the transaction, Olam Group said it would remain the majority shareholder of Olam Agri with an estimated 64.6% share.

Established in 2009, SALIC aims to achieve food security for the Kingdom of Saudi Arabia through investments in both domestic and international opportunities.