SALIC acquires 35.43% of Olam Agri for SAR 4.7 bln

SALIC headquarters

The Saudi Agricultural and Livestock Investment Co. (SALIC), a wholly-owned subsidiary of the Public Investment Fund (PIF), signed an agreement to acquire 35.43% of Olam Agri Holdings for SAR 4.65 billion ($1.24 billion).

In a statement, SALIC said the transaction is expected to be completed in 2022 after obtaining the required approvals from the relevant authorities.

Olam is one of the world’s leading commodity trading and processing companies specializing in grains, oilseeds, rice, and animal feed. The firm has more than 9,100 employees in more than 30 countries. In 2021, Olam handled more than 40 million tons of products and recorded revenue of more than $23 billion.

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

He added that SALIC has extensive experience in the food and agriculture sector, which contributes to maintaining food security in Saudi Arabia. “Further, the partnership with Olam will enrich SALIC’s roles to deliver food security in the Kingdom.”

Al Rumaih explained that Olam’s commercial success, expertise, scale in key commodity sourcing, and processing will add significantly to SALIC’s international portfolio.

He also pointed out that SALIC will continue to integrate both existing and future investments.