Singapore grain trader Olam Group Ltd. has received a non-binding offer from the state-owned Saudi investment company Saudi Agricultural and Livestock Investment Co. (Salic) to acquire the remaining stake in the Olam Agri agribusiness. This is reported in the Olam press release.
As part of the deal, the total value of Olam Agri is estimated at $4 billion.
The Olam Agri division was created as part of the restructuring of the Olam Group in 2020, and in 2022 Salic acquired 35.4% of Olam Agri for $1.24 billion.
The deal will allow Salic to gain full control over Olam Agri's assets, which include grain, edible oils and other food products, and become a key player in ensuring food security in the Persian Gulf region and beyond.
Saudi Arabia's investments in agriculture and livestock are controlled by the country's sovereign wealth fund, which is interested in investing in the Russian agricultural sector.
As part of the deal, Salic may acquire some Russian agricultural assets and enter the Russian agricultural market through the proposed acquisition of the Azov Grain Terminal and Rusmolco.
Salic is a Saudi investment company in the field of agriculture (barley, wheat, corn, soybeans, rice, sugar, edible oil and meat). The headquarters is located in Riyadh (Saudi Arabia).
Olam Group Limited is engaged in the supply, processing and packaging of agricultural products. The company includes divisions of Olam Food Ingredients, Olam Global Agri and Olam International Limited. The company cooperates with food manufacturers, packaged food manufacturers and farmers.
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