Olam Group, based in Singapore, is close to selling its remaining share of its farming business to Saudi Arabia’s state-owned farming company.
A Wall Street Journal report cited anonymous sources saying the deal with Saudi Agricultural and Livestock Investment Company (Salic) might be announced this month. However, they caution that since talks are still ongoing, the deal isn’t guaranteed.
When WSJ asked about the deal, Olam Group wouldn’t comment directly but pointed to their November announcement. Back then, they said Salic had made an unofficial offer to buy their agricultural products business and that they were considering the sale.
Read Also: Saudi firm completes $1.24bn takeover of Olam’s agri unit
The Saudi company already owns a big piece of this business – they bought 35.43% of Olam Agri in 2022 for $1.24 billion, which valued the whole business at about $3.5 billion.
Salic is fully owned by Saudi Arabia’s Public Investment Fund. While they mainly invest in farming, they also put money into fish farming, meat, and poultry industries.
Olam Agri is a major global supplier. They deal in grains, animal feed, rice, cooking oils, special grains and seeds, cotton, wood products, rubber, and financial services related to farming. The company operates in more than 30 countries and made $23 billion in revenue in 2023.
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