According to a report from the Wall Street Journal, which cited unnamed sources, the announcement regarding the deal with the Saudi Agricultural and Livestock Investment Company (Salic) could come this month. However, they also mentioned that since discussions are still in progress, nothing is set in stone yet.
When WSJ inquired about the deal, Olam Group didn’t provide a direct comment but referred back to their announcement from November. At that time, they revealed that Salic had made an informal offer to acquire their agricultural products division and that they were weighing the sale.
The Saudi firm already holds a significant stake in this business, having purchased 35.43% of Olam Agri in 2022 for $1.24 billion, which pegged the total value of the business at around $3.5 billion.
Salic is entirely owned by Saudi Arabia’s Public Investment Fund. While their primary focus is on agriculture, they also invest in aquaculture, meat, and poultry sectors.
Olam Agri is a key player in the global supply chain, dealing with grains, animal feed, rice, cooking oils, specialty grains and seeds, cotton, wood products, rubber, and financial services tied to agriculture. The company operates in over 30 countries and reported $23 billion in revenue for 2023.