Saudi food company SALIC to acquire stake in Olam Agri

24 March 2022 Riyadh, KSA
Saudi food company
  • PIF-owned company agrees to buy 35.4% of Asian agri-business firm.
  • Food and Agriculture is one of the Public Investment Fund's 13 strategic sectors.
  • Fund aims to boost domestic food production and diversify external supply.

The PIF-owned Saudi Agricultural and Livestock Investment Company (SALIC) today said it has agreed to acquire a 35.43% stake in the Asian agri-business firm Olam Agri Holdings for $1.24 billion.

The transaction is expected to be completed during 2022 after obtaining approvals from the relevant international authorities, SALIC said in a statement.

Eng. Sulaiman Al-Rumaih, the group CEO of SALIC, said the partnership with Olam Agri would contribute to his company's role in boosting food security in Saudi Arabia. SALIC, which was established in 2009, invests inside Saudi Arabia and abroad to develop a responsible and sustainable investment portfolio.

“Our partnership with Olam Agri aims to develop and support SALIC's mission as PIF's investment arm in the Food and Agriculture sector," said Al-Rumaih.

Food and Agriculture is one of PIF's 13 strategic sectors, as outlined in its 2021-2025 program, with the aim of helping achieve sustainable domestic food production and diversify external supply sources.

This will be strengthened through SALIC's partnership with Olam Agri, which is one of the world's leading commodity trading and processing companies specializing in grains, oilseeds, rice, and animal feed. The company employs more than 9,100 employees in more than 30 countries, and last year handled more than 40 million tons of products.