Saudi Fund Acquires Full Control of Olam Agri in $4 Billion Deal

The transaction strengthens Saudi Arabia's food security strategy while allowing Olam Group to focus on its other business units.

Saudi Agricultural and Livestock Investment Company (SALIC), part of Saudi Arabia's Public Investment Fund, will acquire the remaining 64.6% of Olam Agri in two phases, valuing the unit at $4 billion.
SALIC will initially purchase a 44.6% stake for $1.78 billion, raising its total ownership to 80%, with an option to buy the remaining 20% within three years.
The sale will generate $2.58 billion in gross cash proceeds for Olam Group, which plans to explore strategic options for its remaining businesses, including a potential IPO for Olam Food Ingredients (ofi).
Olam Agri, which contributed nearly 65% of Olam Group's 2023 revenue, focuses on grains, edible oils, rice, and cotton, aligning with SALIC's goal to diversify global food supply sources.
The deal reflects a 14% premium over SALIC's initial investment in Olam Agri in 2022 and highlights Saudi Arabia's efforts to bolster food security amid high import dependence.