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🌱 Saudi Agricultural and Livestock Investment (SALIC) has made a non-binding offer to buy the remaining 64.7% stake in Olam Group’s Olam Agri business unit, according to an exchange filing.

In a statement provided to Bloomberg, Olam Group said: “The company is reviewing and in discussions regarding a potential sale of its stake in the Olam Agri business. No definitive terms or formal legal documentation have been agreed upon.”

Olam Group is one of the world's biggest agricultural commodity traders that supplies food, feed, fibre and ingredients – including cocoa, coffee, cotton, nuts and spices – to customers worldwide.

The offer comes after Olam completed the sale of a 35.43% stake in Olam Agri to SALIC for $1.24 billion in December 2022. At the time, the transaction gave Olam Agri an equity valuation of $3.5 billion.

At the time, Olam's co-founder and CEO, Sunny Verghese, said: “Olam’s partnership with SALIC, a strategic, global investor, will position us for even stronger growth as we realise synergies across our complementary strengths".

Also in December 2022, SALIC’s Group CEO, Sulaiman AlRumaih, commented: "Our partnership with Olam will expand SALIC’s international footprint and increase access to strategic commodities. SALIC will leverage its international investments and local portfolio companies to strengthen its position across the agri-food value chain as a global food security player.”

Saudi Agricultural and Livestock Investment is controlled by Saudi Arabia’s sovereign wealth fund.

FoodBev has approached SALIC and Olam Group for comment.

Top image: ©Olam

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