By Abbas Nazil
Saudi Arabia’s SALIC International Investment Company has finalized the acquisition of a 35.43 percent stake in Olam Agri Holdings for $1.24 billion, a move that underscores the growing emphasis on food security and international collaboration.
The transaction, which closed on December 23, 2024, values Olam Agri Holdings at $3.5 billion. Olam Group, headquartered in Singapore, will retain a majority stake of 64.57 percent in its agricultural unit, maintaining significant control while leveraging the new partnership for strategic expansion.
The deal, initially announced in March 2022, marks a pivotal step in Olam Group’s ongoing restructuring efforts designed to enhance shareholder value and optimize its capital structure.
This partnership is expected to generate synergies that will fuel Olam Agri’s growth, particularly in untapped Middle Eastern markets.
The establishment of a Strategic Supply & Cooperation Agreement between Olam Agri and SALIC further solidifies this intent, positioning the company to strengthen its footprint in the region.
Sunny Verghese, Co-Founder and CEO of Olam Group, emphasized the significance of the transaction, noting, “This deal reflects Olam Agri’s food security expertise, which is emerging as an important secular trend for our industry.”
He added that closing such a substantial deal amid global economic uncertainties highlights the robustness of Olam Agri’s business model and the confidence placed in its future prospects.
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For SALIC, the acquisition aligns with Saudi Arabia’s Vision 2030 economic transformation plan, which prioritizes diversifying investments and securing sustainable food sources.
SALIC Group CEO Sulaiman AlRumaih hailed the partnership, stating, “This strategic partnership with Olam, whose global leadership is in grains and diversified products, will be a key contributor towards achieving our Vision.”
The collaboration is seen as a critical component in diversifying SALIC’s portfolio and ensuring reliable access to key agricultural commodities to meet the rising global food demand.
Olam Agri’s expertise in grains and diversified products will play a central role in advancing SALIC’s mission of enhancing food security.
The strategic alignment also underscores the broader trend of food security investments amid growing global population pressures and supply chain vulnerabilities.
This partnership represents a fusion of two entities with complementary goals: Olam’s operational expertise and established global presence combined with SALIC’s focus on food security and sustainable investments.
Together, the companies aim to achieve mutual growth while addressing one of the most pressing challenges of the 21st century—ensuring stable and sustainable food supplies. END
Source: BusinessDay
