Global agrifood investor Saudi Agriculture & Livestock Investment Company (SALIC) has completed the purchase of a 44.58% share in Olam Agri, part of global food and agribusiness company Olam Group.
The agreement was based on an implied 100% equity valuation for Olam Agri of US$4bn and closing adjustments.
With completion of the US$1.88bn Tranche 1 sale, SALIC owned 80.01% of Olam Agri with Singapore-based Olam Group retaining 19.99%, Olam Agri said on 27 April.
Following completion of Tranche 2 expected to be finalised within three years, Olam Agri said it would become a 100% owned subsidiary of SALIC.
“The completion of the sale of Tranche 1 in Olam Agri to SALIC is another major step forward in delivering on our reorganisation plan,” said Yap Chee Keong, deputy chairman of Olam Group.
Olam Agri specialises in the processing and trading of animal feed, grains, oilseeds, rice and other products and is active in more than 30 countries. In 2024, the company handled 41.5M tonnes of commodities.
The company sources, trades, ships, distributes and processes grains and oilseeds such as wheat, maize, barley, rye, flaxseed, sorghum, chickpeas and soyabeans.
Its oil portfolio includes palm, rapeseed, soyabean and sunflower oils and it serves sectors from food manufacturing to personal care.
The company also operates edible oil processing and refining plants in Nigeria and Mozambique. where it refines crude vegetable oils and markets refined, bleached and deodorised palm oil, palm olein and refined soyabean oil.
Established in 2009, SALIC aims to achieve food security for Saudi Arabia through domestic and international investments.
