Olam Group Limited has completed the sale of a 35.43% stake in its agricultural division to Saudi Arabia’s SALIC International Investment Company for US$1.24 billion.
The deal, which closed on December 23, 2024, values Olam Agri Holdings at US$3.5 billion. Olam Group will retain a majority stake of 64.57% in the agricultural unit. The transaction was first announced in March 2022.
As part of the agreement, Olam Agri and the Saudi Agriculture and Livestock Investment Company (SALIC) have established a Strategic Supply & Cooperation Agreement, aimed at expanding Olam’s presence in Middle Eastern markets.
“This deal reflects Olam Agri’s food security expertise, which is emerging as an important secular trend for our industry,” said Sunny Verghese, Olam Group’s Co-Founder and CEO. He noted that completing a transaction of this magnitude amid current macroeconomic uncertainty demonstrates the strength of Olam Agri’s business model.
According to SALIC Group CEO Sulaiman AlRumaih, the partnership aligns with Saudi Arabia’s Vision 2030 economic transformation plan. “This strategic partnership with Olam, whose global leadership is in grains and diversified products, will be a key contributor towards achieving our Vision,” AlRumaih said.
The deal is part of Olam Group’s broader reorganisation strategy to unlock shareholder value and optimise its capital structure. The Singapore-based company expects the partnership to create synergies supporting Olam Agri’s growth in new markets.
SALIC, which focuses on food security investments, views the deal as crucial to diversifying its international investments and securing sustainable sources for key commodities amid growing global food demand.
