Olam Group has received an offer from the state-owned Saudi investment company Salic to acquire its agricultural division. This is stated in the message of the Union of Grain Exporters and Producers.
The deal worth ~$4 billion will allow Salic to gain full control over Olam Agri's product portfolio, which includes grain, edible oils and other food products. This acquisition will change the landscape of global agricultural trade, positioning the KSA as a key player in ensuring food security in the Persian Gulf region and beyond.
Through the acquisition of Olam Agri, the Saudis will gain control of the Azov grain terminal at low water, notes Union.
Olam Agri was created as part of a restructuring in 2020. In 2022, Salic acquired 35.4% of Olam Agri for $1.24 billion. Olam considered an IPO of the division on the Singapore and Riyadh stock exchanges, but these plans were subsequently postponed.
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