Saudi Arabia’s SALIC International Investment Company has purchased a 35.43% stake in Olam Agri Holdings for $1.24 billion. The transaction, finalized on December 23, 2024, values Olam Agri Holdings at US$3.5 billion, with Olam Group retaining a majority stake of 64.57% in the agricultural unit. The agreement includes the establishment of a Strategic Supply & Cooperation Agreement between Olam Agri and the Saudi Agriculture and Livestock Investment Company (SALIC), aimed at expanding Olam’s presence in Middle Eastern markets.
Sunny Verghese, Olam Group’s Co-Founder and CEO, emphasized the significance of the deal, highlighting Olam Agri’s expertise in food security as a crucial industry trend. The partnership aligns with Saudi Arabia’s Vision 2030 economic transformation plan, according to SALIC Group CEO Sulaiman AlRumaih. The deal forms part of Olam Group’s broader reorganization strategy to enhance shareholder value and optimize its capital structure, with the expectation of creating synergies to support Olam Agri’s growth in new markets.
SALIC sees this partnership as a vital step in diversifying its international investments and ensuring sustainable sources for key commodities in response to increasing global food demand.
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